At Coega IDZ, the General Manufacturing sector is regarded as a guaranteed growth and sustainable opportunity for potential investors – to capitalise on.

The sector can be broken down into the following sub-sectors.

Construction & Engineering Machinery.

The demand for construction machinery is forecast to climb 6% per year to $130 US billion by 2011. Product sales will be fuelled by ongoing industrialization, rising populations and higher standards of living in developing parts of the world – leading to substantial increases in construction spending.

Mining production in mineral-rich developing countries like South Africa will also expand as global economic conditions continue to improve, supporting overall construction equipment market gains.

It is expected that some of the strongest sales advances will be recorded by mixers, pavers and related products, that stand to benefit from the infrastructure development taking place in industrialising parts of the world.

It is also predicted that market conditions will remain fundamentally sound, for other types of construction equipment, including cranes, draglines and excavators, rollers and related earthmoving equipment, off-highway trucks and tractors.

Converting polymers into automobile parts will provide further investment opportunities for the construction of machinery in the conversion of raw materials to finished products.

Medical Devices.

In 2008 the South African medical devices market turnover was estimated at R1.9 billion (acquisition price) and R 2.5 billion (supplier exist price) making up about 0.5% of the global market for these products.

The medical devises market is diverse, where the local market is dominated by imports, with some 80%-90% of consumed products (by value) being imported.

The products of large multinationals, such as Johnson and Johnson and Smith and Nephew, constitute a significant proportion of all imported products. There are approximately 30 to 50 organisations in South Africa that have annual turnovers of R15 million with some of these listed on the Johannesburg Stock Exchange (JSE).

Nelson Mandela Bay is also home to Aspen Pharmacare, the largest generics medicines manufacturer and leading supplier in the southern hemisphere – to both the private and public sector in South Africa.

Electro Technical.

South Africa has an Electro Technical industry, which is superior in terms of size, level of advancement and technological depth – to that of a nation – at a similar stage of development.

The South African Electro Technical industry is shown to be an “enabler” (the essential glue) for integrated industrial growth, which is evidenced by electronics industry revenues growing at levels well above the overall GDP growth rate.

The Coega IDZ is identified as an ideal location for the assembly and distribution of consumer durables such as washing machines; stoves; refrigerators and consumer electronics such as LCD TV & document systems (printers; copiers; scanners).

Key players in – industrial, power, defence and telecoms electronics – include Siemens, Alcatel, Ericsson, Altech, Grintek, Specscom, Tellumat and Marconi. This is a highly competitive consumer electronics market – producing high value-added electronics products.

In addition, Gartner, the international research group rates South Africa as one of its top 30 software developing outsourcing destinations, with research conducted in 2007 placing it on par with Israel – in the Europe, Middle East and Africa region – and next to Australia and India globally.

All the above confirm the Coega IDZ as the perfect launch pad for investment in this sector.

Metals and Metallurgical.

The Coega IDZ is one of a few locations globally where the basic enabling infrastructures are in place for metals industry investors, including swift and immediate access to national roads, rail, telecommunication lines and the adjacent deep water Port of Ngqura.

In addition, South Africa has a unique comparative advantage in mineral and metal resources. Not only does the country have a considerable portion of the world’s known reserves of alumino-silicates, chromium, iron ore, gold, manganese, platinum-group metals, vanadium and vermiculite – but it is also rich in antimony, fluorspar, phosphate rock, titanium and zirconium.

Within the Coega IDZ areas have been allocated primarily for metals investments.

The Coega IDZ is linked to Gauteng and the Northern Cape by modern highways and rail where raw materials for ferromanganese and steel production can be sourced.

And the Coega IDZ has been identified by investors as a preferred location for metallurgical smelters and up-stream and down-stream processing plants over a wide range of minerals.

Key competitive advantages at a glance

• Access to an unrivalled abundance of raw materials.
• Basic enabling infrastructure is in place, access to national roads, rail, telecommunication lines and adjacent deep water port of Ngqura.
• Other enabling infrastructure available includes storm-water channelling, sewerage, potable water, communication sleeves, electrical substations and street-lighting.
• Investor specific infrastructure can be developed.
• Access to a range of artisans, research and development scientists, project and operational managers and operational supervisors.
• Low cost base for manufacturing.

For further investor information as well as current projects and testimonials please contact our sector head: Mr Johan Fourie

Business Development Manager

Email: johan.fourie@coega.co.za

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