Oct 30, 2009
© Reuse this
Modise: The Germans are investing R178-million in a new car-part factory in the Eastern Cape. Tell us a bit more about this.
Creamer: This sounds like a green shoot in the automotive industry. We have been hearing a lot of negative news about the automotive industry, not only in South Africa, but also globally. Now, we see that a German company is willing to come in even at this risky stage and invest in bricks and mortar in the Eastern Cape.
The company we are talking is Benteler Automotive. It is a 133-year-old family owned company and in 35 countries. But, it is here, really to supply dashboard panels, bumpers and chassis parts mainly to Volkswagen and it will be situated right next door to Volkswagen in Uitenhage.
It has also got an eye on the Coega port where it can also be doing exports. We see that their factory is going up at the moment and will be live be mid-next year. It is part of Volkswagen's plan to make sure that we achieve a 70% local South African content for South African produced vehicles.
Modise: The French are extending R1,5-billion credit for clean-energy projects undertaken in South Africa.
Creamer: Renewable energy is on the lips of people world wide and we see these international development banks coming through and wanting to give a stimulus to the various renewable energy projects.
Some of the projects that stick are the smaller ones. Now, we see that Agence Française de Développement (AFD) from France are willing to put a credit line of R1,5-billion up to commercial banks in South Africa. This must be used for small-and medium-sized energy efficiency and renewable energy projects.
The banks that are involved at the moment and there could be more in the future; starting with Absa, Nedbank and the State-owned Industrial Development Corporation. We see that they want to enlarge this market and they also want to involve the smaller players. It is all about, in the end, reducing the global carbon-dioxide footprint.
Modise: Well, some more European involvement in the South African economy, with the Irish now backing the building of a wind farm in Jeffreys Bay.
Creamer: Yes, the Irish company Mainstream is prepared to assist with the funding and financing and development of a wind farm in Jeffreys Bay. They are looking at a part of Jeffreys Bay close to the farm area called Sunnyside dairy farm. The idea is to set-up a wind farm there.
The total envisaged investment in the longer term is about R2,3-billion for 125 MW wind farm. It will start small in a first phase of about 16 MW and the environmental impact assessment is being done that and once that is completed one can start looking at physically putting in the various wind turbines, which will be done in modules of about 2 MW and 2,5 MW each.
But, we see that South Africa is really lagging in wind energy and we know that we have only really got four turbines in South Africa as a whole in the Western Cape, compared to Germans, for instance, who have about 22 000 of these. So there is scope for movement forward.
Modise: Thanks very much. Martin Creamer is publishing editor of Engineering News and Mining Weekly, he'll be back with us at the same time next week.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines
Updated 21 minutes ago In its single-largest contract for services or goods to date, freight logistics group Transnet has announced the awarding of a five-year, R15.5-billion fuel supply deal to nine black and women-owned companies. Following a “rigorous, open and public” bidding...
Updated 44 minutes ago Integrated energy and chemicals company Sasol has appointed Stephen Cornell executive VP of international operations, based in Houston, Texas, in the US, effective February 1, 2014. Cornell, who would report directly to Sasol CEO David Constable, was currently...
Updated 3 hours ago JSE-listed Vunani Property Investment Fund (VPIF) has entered into an agreement with Magakabye Property Services to buy rental enterprise Wellington Road, in Parktown, Gauteng, measuring 12 140 m2 collectively, for R102.5-million. This transaction was a step towards...
Recent Research Reports
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Updated 5 hours ago As US car maker Ford on Thursday unveiled its new Mustang on the global stage, Ford Motor Company of Southern Africa (FMCSA) announced that local fans can look forward to seeing the iconic pony car in local showrooms in 2015. The new Ford Mustang has been redesigned...
Updated 5 hours ago MAN Truck & Bus South Africa (SA) has opened a new R180-million parts distribution centre (PDC) in Germiston, Gauteng. The new facility, located roughly four kilometres from the company’s Isando headquarters and the OR Tambo International Airport, has been designed...
Does crime, political enemies or shady business deals make you a little bit nervous? Looking for an armoured sports-utility vehicle (SUV)? Mercedes-Benz has the product for you. The new R2.3-million ML500 Guard vehicle has been unveiled in South Africa. The M-Guard,...
A joint venture (JV) company created by South Africa’s Denel defence industrial group and the United Arab Emirates (UAE) group Tawazun has won a R5-billion contract for precision guided munition (PGM) systems for the UAE Air Force. The JV is Tawazun Dynamics and it...
A dry flue-gas desulphurisation (dry FGD) system uses a lime-based reagent to remove sulphur oxides (SOx) from the flue gases of any combustion installation without using water, says gas and energy specialist engineering company Tractebel Engineering South Africa...