http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.12Change: -0.01
R/$ = 11.96Change: -0.09
Au 1204.26 $/ozChange: -1.81
Pt 1146.50 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 24, 2011

Black firm in R500m govt-backed flexible plastic packaging film expansion

Back
Fima CEO Patrick Munyembate tells Engineering News Online”s Martin Creamer of the company’s R500-million expansion plan to secure a larger slice of the South African market through import substitution. Cameraperson: Nicholas Boyd. Video Editor: Darlene Creamer.
 
 
 
Engineering|Africa|Industrial|Packaging|Africa|Packaging
Engineering|Africa|Industrial|Packaging|Africa|Packaging
engineering|africa-company|industrial|packaging-company|africa|packaging
© Reuse this



A 100% black-owned flexible plastic packaging film producer is embarking on a R500-million expansion programme to substitute imports and to capture a larger slice of the burgeoning African market.

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)
 
 
 
 
 
 
 
 
 
Latest News
Tongaat Hulett CEO Peter Staude
Despite a record year, Tongaat Hulett’s starch and cellulose division was impacted by load-shedding during the year ended March 31, CEO Peter Staude said in a telephone interview on Monday. “The starch and glucose operation, which is the only wet-miller in...
The Competition Commission has referred a case of alleged collusion against JSE-listed construction materials company Dawn, along with its subsidiaries DPI Plastics, Ubuntu Plastics and Sangio Pipes, to the Competition Tribunal for prosecution. The commission alleged...
JSE-listed Rhodes Food Group grew its turnover 12.4% to R1.3-billion for the six months ended March 29, while normalised operating profit was up 17.3% to R126-million, the company reported at its interim results presentation on Monday. The company’s normalised...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96