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)
Other Intellectual Property Law News
Pharmaceutical companies typically invest substantial amounts of money into research and development. Their research, however, is not only aimed at discovering new active pharmaceutical ingredients (APIs). Instead, some companies make small modifications to existing...
A controversial patent process known as ‘ever-greening’ is being carried out by many pharmaceutical brands, and is preventing medications from being made available as generics, affecting many South Africans who are struggling to keep up with the cost of medication....
It has been over six years since the government began developing the draft policy on intellectual property (IP) that has been the focus of major public controversy following the PharmaGate scandal, which involved a leaked pharmaceutical industry email by Knowledge...
Recent Research Reports
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...