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KwaZulu-Natal Business 2017-18 edition

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KwaZulu-Natal Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2008, established itself as the premier business and investment guide to the KwaZulu-Natal Province. The 2017/18 edition includes special features on the Richards Bay area and its increasingly important Industrial Development Zone, the investment appeal of Durban and the growing maritime economy. Up-to-date overviews on the province’s economic sectors provide unique insights. Global Africa Network Media (www.gan.co.za), the publisher of KwaZulu-Natal Business, specialises in business-to-business print and electronic publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.

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OVERVIEW by 19% and revenue from the same source went up by 23%. These products make up 91% of the company’s output. Extruded products make up the remainder. Previous problems that the company experienced in getting LPG have been resolved and exports to the automotive industry in the USA are on the increase. Two large oil refineries and a sophisticated sugar milling and refining industry underpin provincial chemical manufacturing. The chemicals and petrochemicals subsector makes up 17% of the manufacturing output of KwaZulu-Natal, with industrial chemicals accounting for nearly a third. The group headquarters of Africa’s biggest pharmaceutical manufacturer, Aspen, are located in La Lucia Ridge. German chemicals group Lanxess has built a carbon dioxide concentration unit at its existing plant in Newcastle. The company makes tanning raw materials at Merebank in Durban and rubber chemicals in Isithebe north of Durban. Newcastle is a chemical manufacturing hub. The big steel works of Arcelor Mittal produce by-products such as ammonium sulphate, and large companies such as Karbochem, Bayer, African Amines and SA Calcium Carbide also operate in the area. AECI has a big presence in the province under the Chemical Services banner. Chemical Initiatives runs an elemental-nutrient sulphur plant in Umbogintwini. SA Paper Chemicals operates a big plant at Isithebe. Protea Chemicals, has a large manufacturing plant at Mobeni. Sappi Saiccor’s Umkomaas plant is the biggest producer of specialised cellulose in the world with production edging upwards every year towards full capacity of 800 000 tons per annum. Illovo Sugar manufactures downstream products such furfural (used in lubrication oil), furfuryl alcohol, diacetyl (a flavouring in margarine) and ethyl alcohol. Kynoch makes fertilizer at plants in Durban and Richards Bay. Foskor’s acid division manufactures sulphuric acid, phosphoric acid and granular fertilizer in Richards Bay. ChemSpec makes paint at Canelands. 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. Mcbean Beier Plastics and PCI also operate out of Pinetown. Textiles Shanghai, with which KwaZulu-Natal has signed a new memorandum of understanding, has agreed to run an exchange programmes focussing on clothing and textiles. Thirty local students will study in Shanghai in the first phase of the project. Canvas and Tent Manufacturing has more than 400 employees in Ladysmith. There are 219 clothing companies in the province (Coface). Ninian & Lester has about 1 500 employees. The footwear sector is showing good recovery after taking a battering from Chinese imports. The purchase of 39% of Eddels Shoes by management and staff has paid off, with 385 staff employed in making 2 700 leather shoes every day. Two international safety footwear firms operate out of Pinetown: Bata Industrial and Beier. The latter company joined forces with three other South African safety footwear manufacturers in 2014 to form the BBF Safety Group. Carpet manufacturers Belgotex Floorcoverings and Ulster Carpets have facilities in Pietermaritzburg and Durban respectively. Home appliance manufacturer Defy, which became part of Turkish group Arçelik in 2011, employs about 2 600 people. Böhler Uddeholm in Pinetown produces tooling materials and welding consumables. CONTACT INFO Aluminium Federation of South Africa: www.afsa.org.za Chemical and Allied Industries’ Association: www.caia.co.za Manufacturing Circle: www. manufacturingcircle.co.za National Association of Pharmaceutical Manufacturers: www.napm.org.za National Department of Trade and Industry: www.thedti.gov.za Plastics SA: www.plasticsinfo.co.za KWAZULU-NATAL BUSINESS 2017/18 66

In touch every day FOCUS At Mondi, our products protect and preserve the things that matter. Mondi is an international packaging and paper Group, employing around 25 000 people across more than 30 countries. Our key operations are located in central Europe, Russia, North America and South Africa. We offer over 100 packaging and paper products, customised into more than 100 000 different solutions for customers, end consumers and industrial end uses—touching the lives of millions of people every day. In 2016, Mondi had revenues of €6.6-billion and a return on capital employed of 20.3%. The Mondi Group is fully integrated across the packaging and paper value chain – from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions. Our innovative technologies and products can be found in a variety of applications including hygiene components, stand-up pouches, super-strong cement bags, clever retail boxes and office paper. Our key customers are in industries such as automotive; building and construction; chemicals; food and beverage; home and personal care; medical and Richards Bay mill. pharmaceutical; packaging and paper converting; pet care; and office and professional printing. Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. For us, acting sustainably makes good business sense and is part of the way we work every day. We have been included in the FTSE4Good Index Series since 2008 and the JSE’s Socially Responsible Investment (SRI) Index since 2007. Mondi South Africa Our South African business sustainably manages plantation forests and manufactures and sells pulp, virgin containerboard and uncoated fine paper. We own and manage one of the largest Forestry Stewardship FSC®-certified plantation units in the world. We have 1 700 employees working across three divisions: Forestry operations, a pulp and linerboard mill, and an uncoated fine paper and newsprint mill. CONTACT INFO Physical address: Travancore Drive, Merebank 4052 Postal address: PO Box 31024, Merebank 4059 Tel: +27 31 451 2111 | Website: www.mondigroup.com 67 KWAZULU-NATAL BUSINESS 2017/18

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