Coronavirus a catalyst for deciding on a new global manufacturing hub

  PRETORIA – The book ‘In the Eyes of Darkness’ (1981) by Dean Koontz details about the global rat race to see who has better weapons among the superpowers, China, Russia and the United States. It has always been known that biological warfare is real but very people understand what it entails. There are claims that that the coronavirus (or Covid-19) is part of biological warfare but it is unclear who is attacking whom as the crisis grows. No formal sources have commented on this except for Russia after it…

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Is the coronavirus outbreak a risk for South Africa’s agriculture?

There is a strong sense of unease in the world right now. The coronavirus outbreak in China is fast spreading across Asia and other regions, and the health implications present risks for global value chains. From a macroeconomic perspective, we have already seen organisations such as the Organisation of Economic Co-operation and Development slashing growth forecasts for the year. Some of the economic data released in China this week was quite weak. In my own world of the agricultural economy, I have started to pick up concerns from various stakeholders…

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Load-shedding is killing South Africa’s manufacturing industry

  Sentiment in South Africa’s manufacturing industry fell to the lowest level in more than a decade in February as the prospect of continued power cuts and concern about the global economy weighed on confidence. That makes the recovery of an economy that the government estimates expanded at the slowest pace in 10 years in 2019 even more challenging. Absa Group Ltd.’s Purchasing Managers’ Index, compiled by the Bureau for Economic Research, dropped to 44.3 from 45.2 in January, the Johannesburg-based lender said in an emailed statement Monday. That’s the…

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Mozambique gas can spur SA construction and manufacturing sector

The discovery of vast quantities of gas offshore of Mozambique’s northern province could catalyse the economic development South Africa needs. Mozambique’s Rovuma basin holds the biggest natural gas discoveries in recent history with the basin estimated to hold about 32 billion barrels of equivalent (boe), enough to supply Europe’s gas needs for a decade. Speaking at the Africa Gas Forum in Cape Town on Monday, recently retired executive director of SA Oil and Gas Association (Saoga) Niall Kramer, said South Africa – coupled with last year’s discovery of an estimated…

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Alpla builds new manufacturing plant in Lanseria, South Africa

Austrian packaging manufacturer Alpla is building a new production site near Johannesburg which will combine activities from five existing plants. As part of the consolidation, the production of five existing plants in Harrismith, Denver, Isando, Kempton Park and Samrand will be transferred to the new plant in Lanseria. Located in the province of Gauteng, the factory aims to simplify and optimise manufacturing processes while also contributing to improving logistics and transport. Standard bottle solutions and tailor-made packaging for the food, personal care, home care, chemical, detergent and pharmaceutical industries will…

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Surge in plastics production defies environmental backlash

Cheap shale gas has fed an investment boom in products that often end up as waste. Has the petrochemicals industry miscalculated? Along the banks of the Ohio River in Beaver County, Pennsylvania, giant cranes whir overhead as thousands of construction workers toil away at what will be one of the largest plastic factories in the world. Once complete, the citadel of smokestacks and pipeworks will churn out 1.6m tonnes a year of pellets for manufacturers in a wide range of industries. They will then make things such as shrink wrap, shampoo bottles and…

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Sanitary towel factory mooted for EL IDZ

A ‘high-tech’ sanitary towel manufacturing plant is on the cards for East London’s Industrial Development Zone. According to the Eastern Cape Development Corporation, almost 12 000 squares metres had been set aside for the R67m facility which should be operational in June next year. ECDC CEO, Ndzondelelo Dlulane, said they struck a deal with local sanitary towel distributor, Ntombam Sanitary Towels, and Clothing and South Korean investor, M.view Global. “The deal is important in boosting local manufacturing, skills development and transfers, and in positioning the Eastern Cape as a manufacturing…

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South Africa launches poultry masterplan

South Africa is competitive in the global poultry industry and produces chicken at the 6th lowest price per kilo in the world. The introduction of a new poultry sector masterplan in the country, announced by the Department of Trade and Industry (DTI), aims to stimulate local demand, boost exports and protect the domestic chicken industry. The poultry masterplan takes into account several systemic and other problems in the industry. The main objectives of the plan centre on driving local demand and protecting the local industry, feed costs (primarily maize and…

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Toyota wants zero carbon dioxide emissions from Durban plant

Toyota South Africa Motors (TSAM) is investing in solar energy at its manufacturing plant in Prospection in Durban, with the aim of achieving zero carbon dioxide (CO2) emissions from the factory by 2050. TSAM president and CEO Andrew Kirby confirmed that the company has been installing photovoltaic (PV) panels around its plant site since 2016. Three megawatts (MW) of solar power was installed at a cost of R33 million – saving 3 600 tons of CO2 a year. These initiatives involved generating solar power from PV panels on the roofs of its blanking…

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SA MANUFACTURING SECTOR SEES ITS 7TH MONTH OF GROWTH DECLINES

Production in the sector plummeted by almost 6% year-on-year in December.   Production in the sector plummeted by almost 6% year-on-year in December. This is the biggest drop in the sector in recent months. FNB senior economist Geoff Notling said: “All manufacturing divisions recorded negative growth in December. The largest detractors, which were motor vehicles parts and accessories, declined by 24.9% year-on-year while petroleum and chemical products declined by 5.9% year-on-year.” He said load shedding contributed towards the contraction: “What we found with our models is that electricity output declined…

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