OVERVIEW Manufacturing
OVERVIEW Manufacturing Mercedes-Benz and Volkswagen are breaking records. In 2019 the Uitenhage plant of Volkswagen Group South Africa created a new production record of 161 954 vehicles, with 108 422 destined for the export market. Sales for the group were also good, with 29 619 new Polo Vivos purchased in the year. Mercedes-Benz consistently breaks records for the number of cars it exports through the Port of East London via Transnet Port Terminals. The company is spending about R10-billion to prepare its plant to manufacture the new C-Class. The plant will also become an IT Hub with a focus on data analytics, software development and business analysis. About 90 new jobs will be created. Home-grown manufacturer of powertrain and catalytic converter assembly systems, Jendamark, pictured, continues to expand. With operations in Germany and India, the company exports to 18 countries. Continental Tyre South Africa is producing a 19-inch tyre for the first time at its New Brighton facility in Port Elizabeth. The growing sport utility vehicle sector is increasing demand for these tyres, which previously had to be imported. Isuzu SA has completed its consolidation project, with truck and bakkie manufacturing now taking place at its new headquarters in Struandale, Port Elizabeth. Phase 1 in the construction process of the vehicle assembly plant of Beijing Automotive Group South Africa (BAIC SA) is complete. The total project involves an investment of R11-billion. BAIC expects to be building 50 000 vehicles per year at its site at Coega SEZ by 2022. The provincial government aims for more diversification in manufacturing and is targeting sectors where the province already has a competitive advantage (such as wool and mohair), is labour intensive, Online Resources Automotive Industry Development Centre: www.aidc.co.za Coega Development Corporation: www.coega.co.za Eastern Cape Development Corporation: www.ecdc.co.za East London Industrial Development Zone: www.elidz.co.za Sector Insight Assembly systems manufacturer Jendamark has expanded to India and Germany. will have a broad impact and has low barriers for SMME entry. Sectors targeted include: agriprocessing and food; timber; tourism; construction; chemicals; energy and mariculture. First National Battery, a Metair Group company, has one factory at Fort Jackson (plastic components) and two factories in East London, one for automotive batteries, the other for industrial batteries. Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Party in Port Elizabeth and Gately Township, East London. The company recently spent R150- million on doubling capacity at the Port Elizabeth plant. Bodene, a subsidiary of Fresenius Kabi, makes intravenous medicine in Port Elizabeth. East London hosts Johnson & Johnson’s finance, operations and research and development divisions. Aspen Pharmacare’s R1-billion specialised product facility at Port Elizabeth will add 500 jobs to the existing staff of 2 000. The new plant will make products for chronic conditions. Annual production of about 3.6-billion tablets is planned. ■ EASTERN CAPE BUSINESS 2020 38
Education and training A new medical school is to be established. The Eastern Cape Provincial Government has announced that a medical school has been allocated to the province. Nelson Mandela University (NMU) will start offering classes in 2021. The Missionvale campus, near to the Dora Nginza Provincial Hospital, will be the site for the school. A school for vets is being considered for Fort Hare University. At the other end of the age scale, early childhood development (ECD) is to become part of the standard basic education system. It is believed that this will help to improve results of school pupils. Among the important work being done at Rhodes University’s new Biotechnology Innovation Centre (pictured) is research on the basic and applied sides of stem cell biology. Helping pregnant women in rural areas is another focus: a cellphone app will send colour pictures of test strips to diagnostic centres, saving the patient a long and difficult journey to hospital. The University of Fort Hare is leading three innovative studies into biogas including a project investigating compressed biogas for public transport. The South African National Energy Development Institute (SANEDI) is working with Fort Hare on a pilot scheme of biodigesters for households. Walter Sisulu University (WSU) and the University of South Africa (UNISA) offer vocational training (diplomas) and academic programmes (degrees). There are several examples in the Eastern Cape of collaboration between the manufacturing sector and educational institutions. General Motors SA has assigned R3.6-million to a Chair in Mechatronics at NMU, which offers a Bachelor of Engineering in Mechatronics, covering electronics, mechanical engineering and computer-aided design. Volkswagen supports the International Chair in Automotive Engineering at NMU. Rhodes University’s Centre for Environmental Water Quality, within the Institute for Water Research, is sponsored by Unilever. The NMU Institute of Chemical Technology commercialises research through a body called InnoVenton and has several clients in the private sector. Another NMU body, eNtsa, supports the manufacturing sector through research in areas such as automotive, power generation Online Resources Eastern Cape Department of Education: www.ecdoe.gov.za Rhodes University Biotechnology Innovation Centre: www.ru.ac.za/biotech/ Technology Innovation Agency: www.tia.org.za Sector Insight Early childhood development will soon be offered to all pupils. OVERVIEW and petrochemicals. eNtsa is supported by the Technology Innovation Agency. The Provincial Government of the Eastern Cape is supporting skills training in the maritime sector through the Maritime Youth Development Programme. Image: Rhodes University The Eastern Cape has eight Technical and Vocational Education Training (TVET) colleges, most of which have more than one campus: Buffalo City, Port Elizabeth, Lovedale, King Hintsa, Ingwe, King Sabata Dalinyebo, Ikhala and Eastcape Midlands College. ■ 39 EASTERN CAPE BUSINESS 2020
