Textile industry in line for R400m investment

Posted On Monday, 02 June 2003 02:00 Published by eProp Commercial Property News
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South Africa's textile industry was in for a R400 million investment boost following decisions by foreign-local joint ventures to put up three greenfields plants, it emerged at the weekend.

Property-Housing-ResidentialEast London - South Africa's textile industry was in for a R400 million investment boost following decisions by foreign-local joint ventures to put up three greenfields plants, it emerged at the weekend.

Joop de Voest, the consultant representing the plant investors, refused to divulge their identities but said one of the plants would spin, weave, dye and finish cotton fabric and the others would work with non-woven fabrics, which have a wide range of commercial and industrial uses.

The cotton factory would export its products to the US under the Africa Growth and Opportunity Act, while the two non-woven fabric producers would split their output between the export market and local markets.

De Voest said all three potential investors had previous exposure to South Africa and had the go-ahead from their various boards.

The final decision about where to locate the factories had not yet been taken, but De Voest said the East London industrial development zone (IDZ) was a prime candidate.

The IDZ hosted a two-day investor conference last week to convince potential investors that the project was viable.

However, De Voest said there was some scepticism among investors that the zone would be ready by August next year.

At the conference, zone chief executive Peter Miles assured investors that everything would be on track for them to kick off operations next year.

Sectors being targeted were auto components, textiles and clothing, hi-tech manufacturing, engineering and electronics, pharmaceuticals, forestry and wood products, and agricultural products beneficiation.

Miles said the project already had top-level support from the national, provincial and local governments and the first phase, a 250ha duty-free area and 130ha of industrial parks, would be ready for business by August next year.

Investors would have access to prime, reasonably priced industrial land, easy access to the airport, harbour and rail links, competitive service costs, world-class infrastructure and a large, stable labour force.

The port and rail links to Gauteng would be upgraded as soon as a "business case" could be made for the expenditure, Miles said.

The Buffalo City municipality, which includes East London, will give investors in the IDZ rates rebates for seven years and electricity and potable water rebates for three years.



Last modified on Thursday, 15 May 2014 12:21

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