Jan 24, 2011
Black firm in R500m govt-backed flexible plastic packaging film expansionBack
Engineering|Frankfurt|Africa|AVI|Empowa Investments|Fima|Industrial|Industrial Development Corporation|Nestle|Packaging|Simba|Tiger Brands|Africa|South Africa|Packaging|Caesar Molebatsi|Patrick Munyembate|Safripol|Sasol
© Reuse this
Fima CEO Patrick Munyembate tells Engineering News Online in a video interview at the company’s two-line plant in Krugersdorp’s Chamdor industrial area that R350-million of the planned R500-million capital injection will be on a new third production line that will be larger than the combined capacity of the two existing lines.
The two existing lines, which produce 12 000 t of film a year, will focus on speciality business, while the new line, which is scheduled to be commissioned in the first quarter of 2013, will focus on commodity business.
Fima, a 180-employee company that turns over more than R300-million a year, produces biaxially oriented polypropylene (Bopp) film, which is used in an almost limitless array of flexible packaging applications.
The company obtains its polymer raw material from local producers Sasol and Safripol.
Even though Fima is South Africa’s sole Bopp producer, it satisfies only a third of what the South African market requires, with another 18 000 t/y imported, providing significant scope for import substitution.
The company is also planning to increase its exports into the African market in general and the West African market in particular.
Most of the film, which leaves the warehouse in large rolls, is sold to flexible converters like Nampak and Astrapak and then used in the snack and confectionery industries by companies including Simba, Nestle, Tiger Brands and AVI.
The company’s black economic-empowerment partner, Empowa Investments, headed by AMLive morning radio host Caesar Molebatsi, currently owns 62,5% of the company and Munyembate the remaining 37,5%.
The 100% black ownership has given the company a “huge opportunity” to expand the business with funding from South Africa’s State-owned Industrial Development Corporation and with support from the Department of Trade and Industry (DTI).
The DTI sees the potential for the creation of 10 000 more jobs in the declining South African plastics industry, which it is keen to resuscitate.
“In terms of our business, both downstream and upstream, there’s a potential to create 2 000 jobs,” Munyembate tells Engineering News Online.
Fima, which began as a subsidiary of the German-owned Treofan of Frankfurt, went through a formal disposal process in 2009, resulting in a management buyout with funding from BOE and Nedbank.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Updated 3 hours ago Western Cape entrepreneurs had just four days before applications closed to secure cash injections of at least R10-million by pitching their business ideas to major funding bodies at the Western Cape Funding Fair – the province’s own “Dragon’s Den”. The deadline for...
Updated 4 hours ago National carrier South African Airways (SAA) is deploying a locally developed satellite payment system, which is also able to track the aircraft anywhere in the world, across its fleet of airliners. The system, developed by satellite authentication company SatAuth,...
Updated 4 hours ago Financial services provider Stanlib aims to channel the bulk of a R1.2-billion infrastructure equity fund into some of the infrastructure projects under way in South Africa, with a particular focus on renewable energy. Stanlib on Tuesday said the fund, which would...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 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.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...