OVERVIEW Manufacturing:
OVERVIEW Manufacturing: general Tetra Pak’s upgraded facility is better and bigger. An investment of more than R500-million has substantially expanded the capacity and range of packaging that Tetra Pak can deliver from its upgraded facility in Pinetown. In April 2024, President Ramaphosa, pictured, officially reopened the plant, which he said, “aligns with ongoing efforts to rebuild and strengthen the sector”. The two-year project to upgrade the facility supports increased localised production which will allow for quicker delivery of products to market while the introduction of sustainable packaging solutions enhances moves towards a more circular economy. Aluminium producer Hulamin has experienced tough times but the steps it has taken seem to be paying off. Restructuring included a decision to stop producing three lines of products and to focus less on exports and more on the local market. Beverage cans have been prioritised within the group’s product mix. In 2023 the company had capital expenditure of R311-million and expects to spend another R450-million in 2024. Hulamin had previously laid off some workers and closed one of its factories in another province. Hulamin also makes rolled products at Edendale, Pietermaritzburg and Camps Drift. South32’s Hillside Aluminium facility in Richards Bay achieved record production in FY 2023. The company’s annual report said that the maximum technical capacity of the smelter was tested, despite the impact of loadshedding, as “an equal record of 540kt in the nine months ended March 2024” was achieved. The FY 2024 guidance is 720kt. A key component of the economic policies of KwaZulu-Natal and South Africa is the support of Special Economic Zones (SEZs). In addition to its two existing zones, the province wants to establish two new ones. Leather and textiles will be the focus of the planned SEZs in the Newcastle-Ladysmith corridor, an area where those industries already flourish. The province’s two established zones, Dube TradePort (at King Shaka International Airport) and Richards Bay Industrial Development Zone (RBIDZ) are attracting investments in a range of targeted sectors, agricultural exports and logistics, manufacturing and energy, among others. TradeZone2 at Dube TradePort has been ONLINE RESOURCES Aluminium Federation of South Africa: www.afsa.org.za Chemical and Allied Industries’ Association: www.caia.co.za Enterprise iLembe: www.enterpriseilembe.org.za SECTOR INSIGHT Hulamin will spend R761-million over two years. completed and has started attracting investors. KwaZulu-Natal is the second-largest manufacturing centre in South Africa, contributing 21% to national manufacturing GDP. The strongest export sectors are base metals (32% including aluminium), mineral products such as ores, vehicles and chemical products. The sector is also a major contributor to the eThekwini Municipality GDP. The city’s economy grew 4.9% in 2021, 73% of which came from manufacturing, finance, business and trade. Over the last five years the municipality established four manufacturing clusters that collectively have over 200 member firms. Sappi’s massive Saiccor Mill on KwaZulu-Natal’s South Coast is one of the province’s largest processing facilities. ■ KWAZULU-NATAL BUSINESS 2024/25 34
Manufacturing: automotive The Bell Motor Grader will be made in Richards Bay from 2025. OVERVIEW SECTOR INSIGHT In September 2023, Toyota distributed 1.8-million automotive parts locally. The monumental work that went into cleaning up the Prospecton plant of Toyota South Africa, pictured, after devastating floods has paid off handsomely. In September 2023, the company reported that it achieved national market share in vehicle sales of 27.6%, led by the number-one brands in passenger cars and light commercial vehicles, the Corolla Cross and Hilux. More than 50% of the 3 249 Hiluxes sold were the double-cab models and 2 259 Corolla Cross vehicles were sold. In addition to the 1.8-million automotive part pieces sent out locally, the company shipped 272 290 pieces to foreign markets. In total, the company sold 142 612 vehicles in 2023, the highest level achieved for sales since 2007. The company’s total investment of R4.2-billion between 2019 and 2021 included other manufacturing projects and a huge increase in warehousing capabilities. In 2024, Toyota launched the Associated Accessory Products (AAP), bringing in suppliers such as Ironman 4X4, 4X4 Megaworld, Front Runner, IVXIVBUSHINDABA and Thule to enable customers to add accessories from a Toyota dealership. Accessories available through the AAP programme include roofracks, crossbars, rooftop tents, roof boxes, bike carriers, fridges, recovery boards, solar panels and battery management systems. As of January 2024, the province’s other large-scale original equipment manufacturer, the Bell Group, had a new CEO. Ashley Bell, grandson of founder Irvine Bell, had previously worked for the company and has been on the board since 2015. In 2025 the company will start manufacturing the Bell Motor Grader in Richards Bay. A European technology partner and Bell engineers are working on developing a fully battery-operated version ONLINE RESOURCES Automotive Industry Development Centre: www.aidc.co.za Durban Automotive Cluster: www.dbnautocluster.org.za National Association of Automotive Component and Allied Manufacturers (NAACAM): www.naacam.co.za of the popular Bell Articulated Dump Truck (ADT). Between the Toyota plant and the Richards Bay facility of Bell Equipment, upwards of 11 000 people are employed. KwaZulu-Natal has a large automotive components sector which includes large manufacturers such as GUD Filters. In line with the policy of developing Industrial Economic Hubs, the Durban Automotive Supplier Park is planned at Illovo, south of Durban and near to the Toyota manufacturing plant. The Dube TradePort Corporation will manage the project, which covers 1 013ha. Other partners are the eThekwini Municipality, Toyota and the provincial government but the major floods which hit the province in 2022 have slowed progress on the project. Another manufacturer of earthmoving equipment is at Port Shepstone on the South Coast. Dezzi is part of the Desmond Group of companies that was founded in 1973 and now has 18 offices and branches. The Dezzi CMI backhoe loader is a popular part of the company’s range. ■ PHOTO: Toyota SA 35 KWAZULU-NATAL BUSINESS 2024/25
