Nostra
July 8th, 2011, 09:29 AM
Great News About SA's manufacturing sector. I believe the manufacturing sector will be the fastest growing sector of SA's economy over the next decade, Patel and Davies industrial policies are definitely starting to bear fruit
Korean firms to build plants in SA
The huge South Korean investment in SA could result in thousands of job opportunities for South Africans
LOYISO LANGENI and MARK ALLIX
Published: 2011/07/08 06:40:00 AM
SEVERAL South Korean companies are planning to establish multibillion-rand manufacturing plants in SA, boosting the Asian manufacturing powerhouse’s presence in SA’s economy.
Steel firm Posco, electronics group LG, Hankook Tyre, and Korean Trade Insurance will all set up base in Gauteng.
HSG, a manufacturer of heavy metal components, has chosen Richards Bay as its regional headquarters, to target shipping.
The deals were concluded at the three-day Korean trade exhibition in Sandton, which ended on Wednesday.
The huge South Korean investment in SA could result in thousands of job opportunities for South Africans.
South Korean President Lee Myung-bak was in Durban this week to celebrate the International Olympic Committee’s decision that his country would host the 2018 Winter Olympics. -
"There’s a recognition from South Korean companies that Africa presents profitable opportunities, hence we chose SA to host the first ever Korean trade exhibition on the continent," said Byung-Sam Kim, director-general for Africa at the Korean Trade and Investment Promotion Agency.
A study released on Tuesday by the African Development Bank showed that South Korea was among Africa’s top five trading partners. China commanded the biggest share of the African market, accounting for 38% of the continent’s total trade with emerging countries. This was followed by India at 14,1%, South Korea at 7,2%, Brazil at 7,1% and Turkey at 6,5%.
South Korea’s primary steel maker, Posco, announced yesterday that it had bought out Samancor’s 50% holding in their Poschrome joint venture in SA, taking 100% control.
Samancor is the world’s second-largest ferrochrome maker, with annual output of about 1,3- million tons. The product is used widely in making steel alloys and stainless steel.
Samancor was yesterday unable to confirm reports of the deal in the South Korean media. A company spokesman said its CEO, Jurgen Schalamon, was on a trip, and only he was authorised to speak on the subject.
"I think this is indicative of the quality of chrome ore that we have in SA … and the potential for SA to expand not only chrome ore production, but ferrochrome production as well," Abdul Davids, head of research at Kagiso Asset Management, said yesterday.
The deal would probably benefit Johannesburg-listed Merafe Resources, through its 20,5% stake in the Xstrata-Merafe Chrome venture, the biggest producer of ferrochrome in the world, he said.
Posco chairman Chung Joon- yang had this year visited Kenya, Tanzania and Zimbabwe to secure stable sources of ferrochrome, and negotiate Posco’s role in national development and infrastructure projects, South Korean media reported yesterday.
He also visited the Kalagadi manganese mine development and Kumba Iron Ore’s Sishen mine in the Northern Cape , to discuss co-operation between the companies. Posco has an 11,36% interest in Kalagadi’s manganese project, which is 80% owned by Kalahari Resources, a black- owned company led by women, and 20% by SA’s Industrial Development Corporation.
SA supplies more than 50% of high-quality "charge chrome" for the global stainless steel industry. More than 80% of Samancor’s chrome-ore output is consumed in the production of ferrochrome in SA. The remainder is exported.
About 85% of SA’s chrome alloy production is exported to stainless steel producers across the globe.
Samancor was delisted from the JSE in 1998 when it was bought out by BHP Billiton and Anglo American. In late 2009, International Mineral Resources, which operates in Ukraine and Russia, became the majority shareholder, with a 70% direct shareholding in Kermas SA.
Automitive investment explodes
Vehicle investment to hit the road running
Tata Motors’ new plant at Pretoria will boost local confidence, writes Alexander Parker
Published: 2011/07/08 07:51:24 AM
NEWS that Tata Motors, the low-cost automotive arm of India’s diverse Tata industrial empire, will begin work on an assembly plant in Pretoria, will no doubt be widely welcomed as a statement of confidence in SA and not least as a boost for jobs in Gauteng.
However, if all goes to plan, similar announcements from other motor manufacturers are likely to be heard in the coming year. Yesterday’s revelation that Nissan SA is planning to assemble a minibus taxi in the country is a further example of an industrialisation drive in the motor industry.
The news about Tata’s investment — the size and nature of which are still under wraps — comes when several motor companies are considering significant investments as a result of interventions by the state to attract such automotive investment.
As such, it is quite possible that corks were popped at the Department of Trade and Industry when Tata announced its decision. The department is at the heart of what is going on.
The department has begun seeking further investment outside of the current Automotive Production Development Programme (APDP), which focuses specifically on passenger cars, and which offers Mercedes-Benz, Volkswagen, BMW, Toyota, Ford and Nissan a regulatory environment that allows for the mass-production of cars.
In terms of the APDP any passenger car manufacturer who produces 50000 units or more a year can import 20% of their components duty-free.
In other words, the government wants trucks and buses to be built here too.
Negotiations between the vehicle manufacturers, under the auspices of the National Association of Automobile Manufacturers of SA (Naamsa), the component manufacturers, under the auspices of the National Association of Automotive Component and Allied Manufacturers (Naacam), the trade unions and the department have been in play for months.
Johan Cloete, director of Automotive Investment Holdings, who is consulting for the department on the matter, says the state is "working on a support package" for the production of medium and heavy commercial vehicles.
He says the resulting deal, which "should be ready for the fourth quarter", could either be incorporated into the APDP or be a "stand- alone package".
The department’s director- general, Lionel October, says that the "broad thrust" is that the department wants to help the original equipment manufacturers to compete. "The key thing is to get the balance right. We have to offer incentives in terms of a production allowance and a rebate on imports," Mr October says. He says there is "big demand" for bigger vehicles and "most are imported". He says municipalities, the Department of Transport and parastatals all buy larger vehicles.
Mkhululi Mlota, head of the automotive customised sector programme at the Department of trade and industry, confirms that negotiations have been running "since last year. We looked to see what potential for growth and expansion existed."
Mr Mlota confirms that Toyota is also in late stages of negotiations with the department to begin taxi manufacturing in SA.
Along with Nissan and Toyota, he says "Chinese manufacturers, and other manufacturers linked to China" (a possible reference to Johannesburg-based Calibra Motor Corporation’s claimed plan to build a factory in Harrismith) are involved in talks with a specific interest in exporting products to sub-Saharan Africa. With regard to larger vehicles, and specifically buses, the department was looking to "ensure the leverage of government procurement".
Mr Mlota says that the state is by far the biggest customer for large buses, and that even those private entities that buy buses are usually "contracted by the state".
As a result, the government needs to offer a guaranteed market to a bus manufacturer "in order that we can industrialise" in SA. "It’s not that easy, but it can be done," Mr Mlota says.
"Various arms of government currently make their own procurement decisions."
He says that three bus manufacturers "have shown interest" and that the rest were "watching closely".
Mr October says one of the reasons talks are delayed is "tension" between Naamsa and Naacam, with the latter wanting certain guaranteed levels of local content in vehicles manufactured in SA.
Once these issues have been ironed out, SA could be on the verge of a significant wave of investment to construct the infrastructure for the manufacture of yet more trucks, taxis and buses locally, and the establishment of SA as the automotive industrial gateway into growing African markets for manufacturers of bakkies, trucks, taxis and buses. This could well have a significant effect on job creation and skills development
source: www.businessday.co.za
Korean firms to build plants in SA
The huge South Korean investment in SA could result in thousands of job opportunities for South Africans
LOYISO LANGENI and MARK ALLIX
Published: 2011/07/08 06:40:00 AM
SEVERAL South Korean companies are planning to establish multibillion-rand manufacturing plants in SA, boosting the Asian manufacturing powerhouse’s presence in SA’s economy.
Steel firm Posco, electronics group LG, Hankook Tyre, and Korean Trade Insurance will all set up base in Gauteng.
HSG, a manufacturer of heavy metal components, has chosen Richards Bay as its regional headquarters, to target shipping.
The deals were concluded at the three-day Korean trade exhibition in Sandton, which ended on Wednesday.
The huge South Korean investment in SA could result in thousands of job opportunities for South Africans.
South Korean President Lee Myung-bak was in Durban this week to celebrate the International Olympic Committee’s decision that his country would host the 2018 Winter Olympics. -
"There’s a recognition from South Korean companies that Africa presents profitable opportunities, hence we chose SA to host the first ever Korean trade exhibition on the continent," said Byung-Sam Kim, director-general for Africa at the Korean Trade and Investment Promotion Agency.
A study released on Tuesday by the African Development Bank showed that South Korea was among Africa’s top five trading partners. China commanded the biggest share of the African market, accounting for 38% of the continent’s total trade with emerging countries. This was followed by India at 14,1%, South Korea at 7,2%, Brazil at 7,1% and Turkey at 6,5%.
South Korea’s primary steel maker, Posco, announced yesterday that it had bought out Samancor’s 50% holding in their Poschrome joint venture in SA, taking 100% control.
Samancor is the world’s second-largest ferrochrome maker, with annual output of about 1,3- million tons. The product is used widely in making steel alloys and stainless steel.
Samancor was yesterday unable to confirm reports of the deal in the South Korean media. A company spokesman said its CEO, Jurgen Schalamon, was on a trip, and only he was authorised to speak on the subject.
"I think this is indicative of the quality of chrome ore that we have in SA … and the potential for SA to expand not only chrome ore production, but ferrochrome production as well," Abdul Davids, head of research at Kagiso Asset Management, said yesterday.
The deal would probably benefit Johannesburg-listed Merafe Resources, through its 20,5% stake in the Xstrata-Merafe Chrome venture, the biggest producer of ferrochrome in the world, he said.
Posco chairman Chung Joon- yang had this year visited Kenya, Tanzania and Zimbabwe to secure stable sources of ferrochrome, and negotiate Posco’s role in national development and infrastructure projects, South Korean media reported yesterday.
He also visited the Kalagadi manganese mine development and Kumba Iron Ore’s Sishen mine in the Northern Cape , to discuss co-operation between the companies. Posco has an 11,36% interest in Kalagadi’s manganese project, which is 80% owned by Kalahari Resources, a black- owned company led by women, and 20% by SA’s Industrial Development Corporation.
SA supplies more than 50% of high-quality "charge chrome" for the global stainless steel industry. More than 80% of Samancor’s chrome-ore output is consumed in the production of ferrochrome in SA. The remainder is exported.
About 85% of SA’s chrome alloy production is exported to stainless steel producers across the globe.
Samancor was delisted from the JSE in 1998 when it was bought out by BHP Billiton and Anglo American. In late 2009, International Mineral Resources, which operates in Ukraine and Russia, became the majority shareholder, with a 70% direct shareholding in Kermas SA.
Automitive investment explodes
Vehicle investment to hit the road running
Tata Motors’ new plant at Pretoria will boost local confidence, writes Alexander Parker
Published: 2011/07/08 07:51:24 AM
NEWS that Tata Motors, the low-cost automotive arm of India’s diverse Tata industrial empire, will begin work on an assembly plant in Pretoria, will no doubt be widely welcomed as a statement of confidence in SA and not least as a boost for jobs in Gauteng.
However, if all goes to plan, similar announcements from other motor manufacturers are likely to be heard in the coming year. Yesterday’s revelation that Nissan SA is planning to assemble a minibus taxi in the country is a further example of an industrialisation drive in the motor industry.
The news about Tata’s investment — the size and nature of which are still under wraps — comes when several motor companies are considering significant investments as a result of interventions by the state to attract such automotive investment.
As such, it is quite possible that corks were popped at the Department of Trade and Industry when Tata announced its decision. The department is at the heart of what is going on.
The department has begun seeking further investment outside of the current Automotive Production Development Programme (APDP), which focuses specifically on passenger cars, and which offers Mercedes-Benz, Volkswagen, BMW, Toyota, Ford and Nissan a regulatory environment that allows for the mass-production of cars.
In terms of the APDP any passenger car manufacturer who produces 50000 units or more a year can import 20% of their components duty-free.
In other words, the government wants trucks and buses to be built here too.
Negotiations between the vehicle manufacturers, under the auspices of the National Association of Automobile Manufacturers of SA (Naamsa), the component manufacturers, under the auspices of the National Association of Automotive Component and Allied Manufacturers (Naacam), the trade unions and the department have been in play for months.
Johan Cloete, director of Automotive Investment Holdings, who is consulting for the department on the matter, says the state is "working on a support package" for the production of medium and heavy commercial vehicles.
He says the resulting deal, which "should be ready for the fourth quarter", could either be incorporated into the APDP or be a "stand- alone package".
The department’s director- general, Lionel October, says that the "broad thrust" is that the department wants to help the original equipment manufacturers to compete. "The key thing is to get the balance right. We have to offer incentives in terms of a production allowance and a rebate on imports," Mr October says. He says there is "big demand" for bigger vehicles and "most are imported". He says municipalities, the Department of Transport and parastatals all buy larger vehicles.
Mkhululi Mlota, head of the automotive customised sector programme at the Department of trade and industry, confirms that negotiations have been running "since last year. We looked to see what potential for growth and expansion existed."
Mr Mlota confirms that Toyota is also in late stages of negotiations with the department to begin taxi manufacturing in SA.
Along with Nissan and Toyota, he says "Chinese manufacturers, and other manufacturers linked to China" (a possible reference to Johannesburg-based Calibra Motor Corporation’s claimed plan to build a factory in Harrismith) are involved in talks with a specific interest in exporting products to sub-Saharan Africa. With regard to larger vehicles, and specifically buses, the department was looking to "ensure the leverage of government procurement".
Mr Mlota says that the state is by far the biggest customer for large buses, and that even those private entities that buy buses are usually "contracted by the state".
As a result, the government needs to offer a guaranteed market to a bus manufacturer "in order that we can industrialise" in SA. "It’s not that easy, but it can be done," Mr Mlota says.
"Various arms of government currently make their own procurement decisions."
He says that three bus manufacturers "have shown interest" and that the rest were "watching closely".
Mr October says one of the reasons talks are delayed is "tension" between Naamsa and Naacam, with the latter wanting certain guaranteed levels of local content in vehicles manufactured in SA.
Once these issues have been ironed out, SA could be on the verge of a significant wave of investment to construct the infrastructure for the manufacture of yet more trucks, taxis and buses locally, and the establishment of SA as the automotive industrial gateway into growing African markets for manufacturers of bakkies, trucks, taxis and buses. This could well have a significant effect on job creation and skills development
source: www.businessday.co.za