Coega industrial zone gets first investor

Posted On Monday, 23 May 2005 02:00 Published by eProp Commercial Property News
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The first investor to sign up for a site at the Coega Industrial Development Zone aims to commission its textile factory in the first week of November.

Property-Housing-ResidentialBelgian company Sander International will take up about ten of the 40 ha earmarked for textile companies at the zone.

Coega Development Corporation chairperson Moss Ngoasheng said that this was only the first of many announcements.

Hinting at further announcements soon, he said that some 75 projects were under discussion.

Sander CEO and founder Alex Liessens said that the R200-million initial investment would fabricate niche products.

Industries that will be supplied from the factory include automotive and transport.

But Liessens indicated that the South African arm of the company, Sander International Republic of South Africa (Sirsa) will specifically be targeting the hospitality industry as it gears up for the 2010 soccer World Cup.

Recognising the threat that cheaper Chinese imports pose to the textiles industry, Liessens said that the product is specialised and aimed at a niche market - a legacy from competing in Belgium.

In fact, the company will make use of Coega as a base to export to Europe, America and the Middle East.

Liessens hinted that China may be a destination for its products too.

With supply orders already in hand, the company is steaming ahead and excavations at the site have already started.

Phase one, the weaving mill and finishing operations, is due to come on stream in November and will employ some 130 people.

The second phase is planned for production mid-2006 with the final phase coming online towards the end of next year.

A total of 550 people will be employed by the company and at least 30% of these jobs have been earmarked for disabled people.

Sirsa's black-economic empowerment partner, the ICAN foundation, will source the disabled staff.

After all three phases have been completed further construction is planned, amounting to possibly double the initial investment.

In addition, the company will establish an academy that will bring further investment in from foreign countries.

During phase one, machines will be brought in from Germany and Belgium, and a South African delegation will travel to those two countries to learn how to operate them.

Last modified on Thursday, 26 June 2014 10:29

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