http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.77Change: -0.07
R/$ = 11.07Change: -0.11
Au 1167.10 $/ozChange: -24.80
Pt 1202.00 $/ozChange: -17.50
 
 
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 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|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
Engineering||Africa|Industrial|Packaging||Africa||Packaging|
engineering|frankfurt|africa-company|avi|empowa-investments|fima-company|industrial|industrial-development-corporation|nestle|packaging-company|simba|tiger-brands|africa|south-africa|packaging|caesar-molebatsi|patrick-munyembate|safripol-person|sasol-person
© 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)
 
 
 
 
 
 
 
 
Other Video News
More
 
 
Latest News
Updated 4 hours ago South Africa’s National Treasury on Friday reissued its amended request for proposal (RFP) for the five-year multibillion-rand project to replace the legacy systems currently in use with an enterprise resource planning (ERP) solution for an integrated financial...
Systems Automation and Management Durban manager Weyers van der Merwe, Richards Bay dry bulk terminal manager Mandla Mpungose and Umfolozi TVET college principal Sam Zungu.
Updated 4 hours ago The handover of specialised computer equipment to the Umfolozi Technical and Vocational Education and Training College would address one of the greatest challenges faced by Transnet Port Terminals (TPT) at the Port of Richards Bay – a lack of skills in a highly...
Updated 5 hours ago Through hosting the WorldSkills 2014 competition’s mechatronic pre-national finals, industrial control and automation company Festo would promote and support skills development. Festo said the mechatronic competition would give schoolchildren, trainees and students...
More
 
 
Recent Research Reports
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.
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.
 
 
 
 
 
This Week's Magazine
As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
  Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years.  The buildings will be the same and most of the staff will be the same but as the...
 
 
 
 
 
 
 
 
 
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