KwaZulu-Natal Business
ole in the automotive sector while the Engen Oil Refinery is a strategic asset. The province’s existing infrastructure, good soils and fine weather provide a solid base for future growth. KwaZulu-Natal already has significant capacity in heavy and light manufacturing, agriprocessing and mineral beneficiation, all of which is supported by South Africa’s two busiest ports (Richards Bay and Durban), the country’s busiest highway (the N3), a modern international airport and pipelines that carry liquids of all types to and from the economic powerhouse of the country around Johannesburg in the interior. Sappi’s dissolving pulp mill at Umkomaas south of Durban (below) is one of the province’s most significant industrial sites as it produces huge quantities of a material that is used in viscose staple fibre, which in turn is used in clothing and textiles. Together with production volumes from Sappi’s mill in neighbouring Mpumalanga province, the company is the world’s largest manufacturer of dissolving pulp. Sugar, tourism and forestry an paper are other important sectors driving growt and employment in KwaZulu-Natal. In his 2020 State of the Province addres Premier Sihle Zikalala listed the sectors which are be targeted for investment in the future. These are • Aloe processing • Bio-ethanol • Renewable energy • Fish processing • Innovation hubs • Oceans Economy. KwaZulu-Natal has a long coastline that stretche from Port Edward in the south to the iSimangalis Wetland Park in the north. The province’s conta with the sea has brought obvious benefits: fishin fine beaches enjoyed by millions of tourists an two great ports. These ports export vast quantities of minera (mostly through Richards Bay) and manufacture goods (Durban) and serve as an important condu KWAZULU-NATAL BUSINESS 2021/22 EDITION THE GUIDE TO BUSINESS AND INVESTMENT IN THE KWAZULU-NATALPROVINCE SPECIAL FEATUR Automotive Toyota is to spend R2.4-billion on a new vehicle line. OVERVIEW JOIN US ONLINE In a year in which South Africa’s total vehicle exports topped 350 000, it was perhaps not surprising that Durban’s Car Terminal boasted a record of putting more than 500 000 fully-built-up units (FBUs) through the port in 2018/19. The figure includes FBUs that are not motor vehicles and includes vehicle imports. Toyota’s popular Fortuner is exported at a rate of about 150 per month. The company’s plant, just a few kilometres south of the harbour at Prospecton, is to receive a R2.4 billion investment injection in order to produce a new passenger vehicle from the end of 2020. The Toyota Hybrid Synergy Drive vehicle will be produced as a variant. Toyota sells about a quarter of the vehicles sold in South Africa, and accounts for the same proportion of export volumes. The company’s total investment of R4.2- billion between 2019 and 2021 includes other manufacturing projects and a huge increase in warehousing capabilities. The other large-scale original equipment manufacturer in the province is Bell Equipment. Between the Toyota plant and the Richards Bay facility of heavy-equipment manufacturer Bell Equipment, upwards of 11 000 people are employed. In 2019 Bell won the “Major Contributor to Innovation and Technological Advancement in KZN” award and the “Exporter of the Year” award. Exports to more than 80 countries make up about 40% of the company’s turnover and local content of those exports is at 70%. Bell is best known for its heavy equipment which is primarily used in the mining and construction sectors. Another manufacturer of earthmoving equipment is Dezzi, with 18 offices and branches. In 2018 AIH Logistics started assembling Mahindra and Bolero bakkies from kits imported from India on a 5 000m² site at Dube TradePort. The Mathe Group’s tyre recycling plant at Hammars-dale has increased capacity to 150 000 used truck tyres per year and should exceed 200 000 soon, while Powerstar assembles Online Resources Image: Bell Equipment Sector Insight Bell Equipment is scooping awards. WWW.GLOBALAFRICANETWORK.COM | WWW.KWAZULUNATALBUSINESS.CO.ZA E S T 1 8 5 6 trucks in Pietermaritzburg on a site formerly used by Super Group. KwaZulu-Natal’s substantial automotive components sector includes large manufacturers such as GUD Filters, while 39 companies (with 17 000 employees) are members of the Durban Automotive Cluster. Trade and Investment KwaZulu-Natal estimates that the province’s component automotive manufacturers enjoy a combined turnover approaching R10-billion. The Behr Group has an air-conditioning and cooling systems factory in Durban. DURBAN CHAMBER OF COMMERCE AND INDUSTRY NPC WHO WE ARE 13 KWAZULU-NATAL BUSINESS 2020/ Policy and advocacy are at the heart of our work and we assist m HR consultancy and more) across a broad spectrum of sectors, e thought leadership through forum webinars and other networki The Durban Chamber advocates and influences policy decisions
