Manufacturing
KwaZulu-Natal’s sophisticated manufacturing capabilities extend across a range of sectors.
KwaZulu-Natal’s manufacturing enterprises are spread across several sectors, four of which are covered in separate sections in the pages that follow: automotive, food and beverages, textiles and chemicals. In addition, downstream activities arising from the mining, sugar and forestry industries greatly enhance the overall capacity of the province.
Manufacturing contributes 21.5% of the gross regional product (GRP) with a number of positive factors working in the province’s favour: ready access to raw materials such as minerals and timber; first-class infrastructure in terms of roads, a new international airport, rail links and two of Africa’s biggest and busiest ports; and good location with respect to access to South Africa’s biggest market (Johannesburg and surrounds) and the Far East (via shipping exports).
The granting of an operator’s licence to the Richards Bay Industrial Development Zone in late 2009 was good news for the sector. Tata Steel is the anchor client, with more than R700-million invested so far, but the IDZ is targeting a further investment inflow of R5-billion over the next five years.
Statistics South Africa reported that South Africa’s manufacturing industry recovered well in the fourth quarter of 2009, growing by 10%. A comparable figure for the sector in KwaZulu-Natal boosted the provincial economy by 3.2%, compared to the third quarter.
Safal Steel’s new coated-steel roofing factory at Cato Manor is due to come on stream in 2010. The R1-billion project is sure to put competitive pressure on Arcelor Mittal, whose steel plant located at Newcastle currently produces 1.6 million tons of steel products annually.
Hulamin makes aluminium rolled products at Edendale, Pietermaritzburg, and BHP Billiton has two large aluminium smelters at Richards Bay, although most of the bauxite is sourced offshore. The manganese furnaces operated by Assmang at Cato Ridge have high capacities, but diminished demand in 2009 led to part of the plant being shut down.
The Industrial Development Corporation has a share in several manufacturing plants in the province including Prilla 2000, a cotton milling plant, and a phosphoric acid facility in Richards Bay.
KwaZulu-Natal produces about a third of South Africa’s plastic. The sector comprises mostly small and medium sized companies and uses about 150 000 tons of polymer every year. Major national operator Nampak has several plants in the province, at Pinetown, Isithebe on the north coast, and in Durban. The Durban plant specialises in closures, for example for dairy and fruit juices, and for edible and motor oils. Plastic crates and drums are made in Pinetown. McBean Beier Plastics has a plant in Pinetown where coated fabrics and PVC products are manufactured for the automotive, mining, transport and furniture sectors.
