CEO Peter Miles declined to elaborate on the talks, but said two tenants had already been secured at the zone. German wheat beer producer Weissengold as well as German condom manufacturer Condomi were now building factories on the site.
Once these companies were in operation, the East London IDZ would be the first operating IDZ in SA, Miles said.
Government has, so far, pumped several hundred million rand into infrastructure development at most of the four industrial zones, in the hope that large foreign investors would be attracted.
However, there has been little progress in securing private sector tenants at any of the IDZs.
'Developments at the East London site are, therefore, encouraging,' Miles said.
The East London IDZ development company was awarded its operating licence in September.
It has appointed a management team which would start a marketing campaign to secure further tenants, Miles said.
The company has set its sights on the automotive component manufacturing sector.
DaimlerChrysler SA already is manufacturing cars in East London, while the town also has a vehicle import/export terminal, which will count in its favour.
Investors in the forestry beneficiation, textiles and pharmaceutical sectors will also be approached.
Miles said the East London IDZ enjoyed a significant advantage over other IDZs in terms of land and lease costs which would be lower than at its Coega, Richards Bay and Johannesburg counterparts.
Meanwhile, progress was also being made with infrastructure development at areas of the IDZ site which were not yet serviced.
Government has spent R67m on infrastructure development to date and would spend a further R300m by 2004.
With infrastructure in unserviced areas in place, the second and third phases of the IDZ were expected to be operational by July 2004, Miles said.