Views
1 year ago

KwaZulu-Natal Business 2020-21 edition

  • Text
  • Invest
  • Africa
  • Tourism
  • Development
  • Property
  • Infrastructure
  • Africa
  • Logistics
  • Transportation
  • Business
  • Investment
  • Port
  • Nedbank
  • Economic
  • Province
  • African
  • Durban
The 2020/21 edition of KwaZulu-Natal Business is the 12th issue of this unique publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on the vital role played by ports in the province, from the coal exported from Richards Bay to the new cruise liner terminal addition to the Port of Durban. The 10th anniversary of the 2010 FIFA World Cup coincides with the birthday of the Moses Mabhida Stadium, an iconic design that has become a standard feature on the KwaZulu-Natal sporting and events calendar. Likewise the Durban ICC which continues to burnish the province’s reputation as meetings and convention centre.

OVERVIEW Manufacturing

OVERVIEW Manufacturing New factories are being built at Dube TradePort and Cornubia. A new plant to make washing machines has created 75 jobs at the Durban plant of white-goods manufacturer Defy. The R121-million investment is part of a R1.2-billion investment programme which Turkish company Arçelik Global has been following since it bought Defy in 2011. The company has another plant in at Ezakheni (near Ladysmith) and one in the Eastern Cape. Indian generic drug manufacturer Cipla is to build a new facility at Dube TradePort to complement its existing factory in Durban. LG Electronics South Africa has opened a R21-million factory and distribution centre in Cornubia, north of Durban. Expansion of production normally heralds an uptick in the economy. Unfortunately, the fact that more aluminium products are going to be made by Hulamin’s extrusion facility in Pietermaritzburg reflects the fact that the company has closed one of factories in another province. The company believes its restructuring is working well, and its beverage business is doing well. Hulamin also makes rolled products (pictured) at Edendale, Pietermaritzburg and at Camps Drift. The manufacturing sector contributes 17.7% to the provincial Gross Domestic Product (GDP) of KwaZulu-Natal. The strongest export sectors are base-metals (32% including aluminium), mineral products such as ores, vehicles and chemical products. New opportunities in the Blue economy (ship-building and maintenance, oil-rig repair and servicing) and the Green economy (solar panel manufacture, solar, biogas and wind energy plant construction, management and maintenance, heating and cooling devices) are set to grow in KwaZulu-Natal with the allocation of geographical hubs to support these sectors, and the introduction of policies and incentives designed to make them competitive. The Richards Bay Industrial Development Zone has been identified as an area that can attract investment in both of these sectors while the Port of Durban already has a strong boat-building and maintenance sector. The nine-tug contract put out by Transnet National Ports Authority (TNPA) is worth R1.4-billion and was won by Durban-based Southern African Shipyards Durban. iLembe District Municipality is intended as the renewable energy hub of the province, with renewable energy components manufacturing as a key subsector. Online Resources Aluminium Federation of South Africa: www.afsa.org.za Chemical and Allied Industries’ Association: www.caia.co.za Enterprise iLembe: www.enterpriseilembe.org.za Manufacturing Circle: www. manufacturingcircle.co.za Plastics SA: www.plasticsinfo.co.za Sector Insight Defy is hiring. There are 219 clothing companies in the province. Textile manufacturer Africa Bespoke Apparel launched its R81-million factory in Verulam, while Canvas and Tent Manufacturing has more than 400 employees in Ladysmith. Carpet manufactur-ers Belgotex Floorcoverings and Ulster Carpets have facilities in Pietermaritzburg and Durban respectively, while Böhler Uddeholm produces tooling materials and welding consumables in Pinetown. The chemicals and petrochemicals subsector makes up 17% of the province’s manufacturing output, with industrial chemicals accounting for nearly a third. Two large oil refineries and a sophisticated sugar milling and refining industry underpin the provincial chemical manufacturing. Steel and aluminium are other heavy manufacturing products. Sappi Saiccor’s Umkomaas plant is the world’s biggest producer of specialised cellulose, with production edging upwards every year towards full capacity of more than 800 000 tons per annum. KwaZulu-Natal produces nearly a third of South Africa’s plastic requirements. Nampak has several packaging facilities in the province and Mpact’s Pinetown facility specialises in FMCG containers. ■ KWAZULU-NATAL BUSINESS 2020/21 40

Automotive Toyota is to spend R2.4-billion on a new vehicle line. In a year in which South Africa’s total vehicle exports topped 350 000, it was perhaps not surprising that Durban’s Car Terminal boasted a record of putting more than 500 000 fully-built-up units (FBUs) through the port in 2018/19. The figure includes FBUs that are not motor vehicles and includes vehicle imports. Toyota’s popular Fortuner is exported at a rate of about 150 per month. The company’s plant, just a few kilometres south of the harbour at Prospecton, is to receive a R2.4 billion investment injection in order to produce a new passenger vehicle from the end of 2020. The Toyota Hybrid Synergy Drive vehicle will be produced as a variant. Toyota sells about a quarter of the vehicles sold in South Africa, and accounts for the same proportion of export volumes. The company’s total investment of R4.2- billion between 2019 and 2021 includes other manufacturing projects and a huge increase in warehousing capabilities. The other large-scale original equipment manufacturer in the province is Bell Equipment. Between the Toyota plant and the Richards Bay facility of heavy-equipment manufacturer Bell Equipment, upwards of 11 000 people are employed. In 2019 Bell won the “Major Contributor to Innovation and Technological Advancement in KZN” award and the “Exporter of the Year” award. Exports to more than 80 countries make up about 40% of the company’s turnover and local content of those exports is at 70%. Bell is best known for its heavy equipment which is primarily used in the mining and construction sectors. Another manufacturer of earthmoving equipment is Dezzi, with 18 offices and branches. In 2018 AIH Logistics started assembling Mahindra and Bolero bakkies from kits imported from India on a 5 000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant at Hammars-dale has increased capacity to 150 000 used truck tyres per year and should exceed 200 000 soon, while Powerstar assembles Online Resources Automotive Industry Development Centre: www.aidc.co.za Durban Automotive Cluster: www.dbnautocluster.org.za National Association of Automobile Manufacturers of South Africa (NAAMSA): www.naamsa.co.za National Association of Automotive Component and Allied Manufacturers (NAACAM): www.naacam.co.za Sector Insight Bell Equipment is scooping awards. OVERVIEW Image: Bell Equipment trucks in Pietermaritzburg on a site formerly used by Super Group. KwaZulu-Natal’s substantial automotive components sector includes large manufacturers such as GUD Filters, while 39 companies (with 17 000 employees) are members of the Durban Automotive Cluster. Trade and Investment KwaZulu-Natal estimates that the province’s component automotive manufacturers enjoy a combined turnover approaching R10-billion. The Behr Group has an air-conditioning and cooling systems factory in Durban. Ramsay Engineering supplies cross-car beams for BMW and Ford. Funding was received from the Industrial Development Corporation (IDC) to buy new tool-making technology to make this possible. ■ 41 KWAZULU-NATAL BUSINESS 2020/21

Other recent publications by Global Africa Network: