TWO developments totalling more than R150 million demonstrate why KwaZulu-Natal is still considered one of the coolest and hottest places in South Africa for business investment.
The first, a R99.2-million Cold Storage facility at the Dube TradePort adds much needed capacity to Durban’s citrus exports, while the second, R54.3-million new furnace will significantly boost the output of a North Coast foundry, providing further impetus to local exports.
MEC for Economic Development, Tourism and Environmental Affairs, Sihle Zikalala officially opened the new multi-purpose iDube Cold Storage facility recently. Located within Dube TradePort Special Economic Zone, the state-of-the-art facility will tap into to the growing demand for chilled and frozen perishables storage within the region. The facility will initially cater to meat importers servicing local retailers as well as exports of dairy, fruit concentrate and citrus to markets in the European Union and the Far East.
Competitive
“From production to processing, it is essential that we provide healthy and highly competitive business operating environments, which will present new opportunities for both established and emerging enterprises,” Zikalala said.
“To date, we have been successful in attracting R1.5 billion in private sector investment, through various developments within Dube TradePort Special Economic Zone, with a further R4.25 billion in investment that is in the immediate pipeline for developments are to be located within the second phases of Dube TradeZone.”
The new facility is funded in part by KZN Growth Fund, a public entity that is under the KwaZulu-Natal Department of Economic Development, Tourism and Environmental Affairs.
“KZN Growth Fund provided R63.4 million in funding towards iDube Cold Storage to help establish one of the largest multi-temperature cold storage facilities in KwaZulu-Natal. The facility is designed to handle both chilled and frozen perishable products,” said Aubrey Shabane, the growth fund’s Acting Chief Executive Officer.
“Our funding of this project was motivated, in part, by our support of the Black Industrialist Programme, as 50% of the iDube Cold Storage’s shareholding is in the hands of previously disadvantaged individuals. Furthermore, one of the medium-term targets of the company will be to allocate 10% of the shares to employees who will be drawn from BEE qualifying groups,” Shabane said.
iDube Cold Storage falls under the umbrella of the Department of Trade and Industry’s Black Industrialist Programme, which is amongst the initiatives aimed at delivering on South Africa’s transformational goals that are being rolled out within Dube TradePort Special Economic Zone, as well as other locations that are supported by the Provincial Government of KwaZulu-Natal.
The new facility will employ around 80 staff when it is operating at full capacity, drawing its labour from a pool of experienced professionals in addition to creating new job opportunities for local communities, that will be added to the 5 500 jobs that have already been created throughout the entire Dube TradePort precinct.
Tebogo Mogapi, the iDube Cold Storage Chief Executive Officer, commended both National and Provincial bodies for their outstanding assistance in bringing to reality their vision of a multi-temperature cold storage facility. “We are grateful to Dube TradePort, the KZN Growth Fund, the IDT and indeed the province of KwaZulu-Natal for giving us the opportunity to establish our company within this Special Economic Zone and for their continued support throughout the construction phase of the iDube Cold Storage Facility.”
iDube Cold Storage’s 4 500 square meter facility has the capacity to handle 8 600 mobile pallet positions, which can store up to 12 000 tonnes of perishable product. In addition to this, the facility is also equipped to provide a number of ancillary services that include weighing, sorting, repackaging, order picking, and container plug in of products as well as providing distribution and logistics solutions.
New furnace
In the second big investment in KZN, Finland based Metso is increasing its manufacturing capacity for large crusher wear parts castings used in minerals processing by investing in a second melting furnace at its Isithebe foundry on the KZN north coast. The EUR3.5-million (R54.3-million) investment is aimed at ensuring the continued availability of Metso’s heavy crusher wear parts globally.
“The demand for large crusher wear parts is growing in the mining industry. With this investment, we ensure we can meet our customers’ needs. Through the renewal of the foundry, we will improve our capabilities to deliver high quality heavy wear parts,” said Joni Meronen, director of Mining Crusher Wears at Metso.
The renewed foundry will be able to manufacture wear parts for the Nordberg MP2500 cone crusher as well as for Metso and third-party primary gyratory wear parts with full use of the latest manufacturing technologies. The first product deliveries from the new furnace are scheduled for May 2019. During the renovation project, production of castings will continue as usual in the existing facilities.
“We are the leading service partner for the mining industry, and the only supplier able to provide a full portfolio for comminution, from spare and wear parts to equipment and service. This investment is part of our development agenda to execute our commitment to ensuring availability and reduced lead times for our customers,” said Jose E. Perez, senior vice president of the Crushing and Screening Wears business line at Metso.
The Isithebe plant is part of Metso’s global foundry network, consisting of foundries located in Ahmedabad, India; Přerov, the Czech Republic; Quzhou, China; and Sorocaba, Brazil. The renewed foundry will be built to follow Metso’s strict sustainability and quality principles as well as international standards.
“Sustainability is of utmost importance to Metso. We are developing our operations in a safe and sustainable manner, in close dialogue with local communities,” said Thando Makhoba, director of the Isithebe foundry.