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R150m facility boosts manufacturing sector - newsroom - 20-03-2014

The launch of a R150 million new high–voltage cable manufacturing facility is a boost to the manufacturing sector, says Trade and Industry Minister Dr Rob Davies.

Speaking at the official launch of CBI Electric African Cables in Veerening on Tuesday, the minister said the manufacturing sector has shown progress in the last five years and that the project was evidence of support provided by government to the sector.

“The company has benefited from a number of measures from the Industrial Policy Action Plan, including the dti’s Manufacturing Competitiveness Enhancement Programme (MCEP), from which they were supported with R45 million,” said Minister Davies.

MCEP offers incentives designed to drive growth and promote competitiveness in the manufacturing sector. It includes a package of incentives specifically designed for established manufacturers with the aim of promoting competitiveness and retaining jobs.

The facility is accredited in the design, manufacture, installation, commissioning and maintenance of electric power cables. The facility will be the first in Sub-Saharan Africa to design and manufacture high voltage cables up to 275kV with conductor sizes up to 2 500mm². These new cables will be capable of distributing 350MVA, at 132kV and 547 MVA at 275kV, from a single cable circuit.

The new cables will also enable South African energy consumers like municipalities to achieve a distribution of up to 350 MVA, 132 kV, and 547 MVA, 275 kV, on a single cable circuit.

In supporting companies to become competitive, Minister Davies said government has stepped up the work in making sure that substandard products do not compete unfairly in the industry.

“We’re not doing this to protect unsustainable businesses against competition, but rather to promote their competitiveness and boost manufacturing. As a result, the designation of electric cables has enabled [CBI] to grow and expand,” said Davies.

Managing director of CBI Electric African cables, Alan Dickson, said: “South Africa’s growing electricity demand as well as the high copper price necessitated an investment by the company, supported by the dti initiatives, to build a world class production facility.”

The facility will create 27 permanent jobs, while the manufacturing and associated skills will all be developed and retained within South Africa. – SAnews.gov.za