Western Cape Business 2019 edition

The City of

The City of Cape Town established a greentech manufacturing hub in Atlantis in 2011, in response to the Department of Energy’s Renewable Energy Independent Power OVERVIEW Producer Programme (REIPPP). Localisation of manufacturing and the resultant job creation is one of they key priorities of government through the REIPP programme. The hub has already attracted its first large Greentech investor, Gestamp Renewable Industries (GRI). A wind tower manufacturer, GRI has already invested R300m and is in full-scale production. Manufacturing The Atlantis Special Economic Zone is poised for growth. the proposed Atlantis SEZ (ASEZ) capitalises on the province’s already booming renewable energy and green technology sector. Greentech refers to green technologies that reduce or reverse the impact of people on the planet. This includes renewable energy technologies. Wind turbines, solar panels, insulation, biofuels, electric vehicles, materials recycling and green building materials are all examples of green technology. SECTOR INSIGHT Green Cape has won international recognition. Siemens wind towers manufactured at Gestamp Renewable Industries in Atlantis. - Siemens wind towers manufactured at Gestamp Renewable Industries in Atlantis - The Atlantis Special Economic Zone, which is due to be officially certified soon, has already attracted nearly R700-million in private-sector investment. A Moody’s report on the green economy in Africa states that South Africa has the fastest-growing green sector in Africa, and one of the fastest-growing in the world. The Western Cape is driving a green economy manufacturing strategy focussed on Atlantis. About 70% of South Africa’s manufacturing in renewables is happening in the Western Cape. Atlantis was chosen in 2017 as the site of a new factory for Czech fabric manufacturer PEGAS Nonwovens. At R1.3-billion, the investment is the biggest secured by Wesgro and Into SA since 2011. Training for local residents employed by the manufacturer will take place in the Czech Republic. Fridge manufacturer Hisense, already established at Atlantis, is exploring ways to make its product greener, either through its own processes or via its suppliers. The 500 employees at the Atlantis factory produce fridges and televisions that are exported to 13 African countries. Green Cape is an agency that does research and runs projects in areas such as energy efficiency, waste, water and sustainable agriculture. It is a joint initiative of the City of Cape Town, Wesgro and the Provincial Government of the Western Cape. The Western Cape Industrial Symbiosis Programme (WISP), which encouraged manufacturers to use the waste products of other businesses, won international recognition in 2018 when it was runner-up in the Circular Awards at Davos. Growth in the Western Cape manufacturing sector between 2003 and 2013 averaged 2.2% and the Provincial Economic Review and Outlook predicts the same level of growth to 2020. A diverse manufacturing sector contributes 15% to the Western Cape’s GDP. The agri-processing sector (including food and beverages and tobacco) is the largest employer (24%) followed by metals, metal products, machinery and equipment at 19%. A proposed Cape Health Technology Park will further boost the growth of the manufacture of medical devices. The decision by Britain to leave the European Union has led to increased interest in bilateral trading relations with individual European countries. France has established a tech hub in Cape Town and Business France has been facilitating a number of conferences and visits. More than 300 French firms currently operate in South Africa. WESTERN CAPE BUSINESS 2019 94

OVERVIEW Boat building Atlantis is home to Admiral Boat Manufacturers and Phoenix Marine, both specialist catamaran manufacturers, and Celtic Yachts who make catamarans and cruising yachts. Ullman Sails make sails in Maitland while Two Oceans Marine Manufacturing constructs its catamarans on the Foreshore. Southern Wind in Athlone manufacture high-performance super yachts. Robertson & Caine’s facility in Woodstock produces three boats a week for the international market. With a staff complement of 1 350, a record of having launched more than 1 300 vessels and a subsidiary company in Tampa, Florida, the company is a world leader in power catamarans and sailing catamarans. Nautic Africa makes larger vessels, including patrol, defence, oil and gas platforms and commercial vessels. They are also active in service and support, parts and spares, and vessel leasing and management. The Whisper Boat Building Academy is located at the False Bay TVET College. Food and beverages The combination of excellent and plentiful agricultural produce, good manufacturing capacity and a skilled workforce give the Western Cape a competitive advantage in the food and beverages sector. A sophisticated transport infrastructure system allows it to service international markets. Famous Brands has bought a famous Western Cape brand in its drive for greater backward integration. Lamberts Bay Foods supplied Famous Brands restaurants with chips for two decades. With its purchase from Oceana, Famous Brands now has greater control over a menu item at all of its 26 restaurant brands, including Wimpy, Fishaways and Mugg & Bean. Lamberts Bay Food sources potatoes from all over South Africa, but its proximity to the potatogrowing Sandveld region is helpful. British American Tobacco, which has about 65% of the legal ONLINE RESOURCES Cape Chamber of Commerce: www.capetownchamber.com Cape Town Boatbuilding and Technology Initiative (CTBi): www.ctbi.co.za National Department of Trade and Industry: www.thedti.gov.za Wesgro: www.wesgro.co.za domestic market, has moved its administrative headquarters to the Waterfront. The wheat-growing areas of the Swartland host several mills such as Sasko’s facility in Malmesbury. Bokomo has several manufacturing facilities in Atlantis, Epping, Ndabeni near Pinelands, Worcester and Bonnievale. Safari Vinegar is based in the Strand and there are two Heinz manufacturing plants at Wellington and Atlantis. Two of the biggest chicken processing facilities are located on the N7 highway (Tydstroom) and on the N1 (Rainbow Chickens). The Western Cape has about 16 000 commercial pork sows and produces a quarter of South Africa’s milk. Willards has a factory in Goodwood, in nearby Parow there is a Simba factory and local chip and snack manufacturer Messaris, which has been in operation since 1898, has a facility in Elsies River. Nestlé produces condensed milk and milk powder in Mossel Bay and canned pet food in Cape Town. Tiger Brands makes mayonnaise in Bellville and has also invested heavily in its prepared meals plant in Cape Town. SABMiller’s Newlands brewery is one of the busiest in the country as it is responsible for providing product for a very large geographical area. Coca-Cola bottler and distributor Peninsula Beverage has three plants – at Parow, Athlone and Vredendal on the West Coast, and employs 1 300 people. 95 WESTERN CAPE BUSINESS 2019