The opportunity for the potential investor in the Coega IDZ Chemical sector can be directly attributed to the South African Department of Trade and Industry – who are eager to provide chemical companies the opportunity to spread their risks and move closer to certain markets.

South Africa offers huge investment potential as it manufactures 300 types of basic or pure chemicals. It is the largest of its kind in Africa and is highly complex and diversified.

From a strategic perspective the sector can be segmented into 11 sub-sectors excluding synthetic textile fibres, which are listed under the textile industry.

These are (with sector production depicted in brackets): Liquid Fuels (31%), Plastic Products (20%), Consumer Formulated Chemicals (5%), Inorganic Chemicals (8%), Primary Polymers & Rubbers (7%), Pharmaceuticals (8%), Rubber Products (5%), Bulk Formulated (5%), Organic Chemicals (6%), Pure Functional and Specialties (5%) and Fine Chemicals (1%).

Recognising the immediate significance of this industry sector, the Coega Development Corporation (CDC) encourages investors to look into the following investment opportunities.

Chlorine and chlorine compounds are essential elements in the manufacture of thousands of products. The CDC has the land, the infrastructure and the logistics systems in place to support an extensive chlorine cluster.

Processes identified by the CDC as having the most potential include the production of hydrochloric acid, chlorine dioxide, ethylene chlorohydrins and ethylene dichloride.

Local industries which use hydrochloric acid include food processing, pharmaceuticals, lead acid batteries and tyre manufacturers. There is a strong presence of these manufacturers in the Nelson Mandela Bay area, which would provide a ready market for the compound.

Chlorine dioxide is used in pulp and paper bleaching, pool disinfectants and water treatment – all of which are strong and growing markets in South Africa.

Ethyl chlorohydrins are a building block for a wide range of polyesters and plastics used by the motor and textile industries.

It is envisaged that by 2014, South Africa will have a globally competitive chemical sector that produces high value-added products from abundant natural resources by exploiting unique specific technologies designed to stimulate the economic aspirations of all investors.

Pharmaceuticals are one of the key chemical industries in the Eastern Cape. Nelson Mandela Bay is home to Aspen Pharmaceuticals, the largest generics manufacturer in the southern hemisphere and the leading supplier of generic medicines to both the private and the public sectors. Aspen is one of the top twenty generic manufacturers worldwide and South Africa’s number one generic brand.

Plastic conversion.

South Africa has a strong, established sector specialising in the conversion of primary plastics into end products by means of processes such as injection moulding, extrusion (excluding textiles), rotomoulding and forming. The major products include: flexible packaging, rigid packaging, cables, footwear, pipes, films, flooring, and white goods/electrical, automotive and electronic components.

The plastics industry is highly diversified throughout the Eastern Cape Province and includes automotive, packaging, moulding and extrusion, household and construction.

For further investor information as well as current projects please contact our sector head:
Mr Duane Mouton

Business Development Manager Chemicals Sector

Email: duane.mouton@coega.co.za

Telephone: + 27 41 403 0400
Fax: +27 41 403 0401