The Coega Industrial Development Zone (IDZ) has attracted another R1.7-billion in investment for the Eastern Cape economy this year as the Coega Development Corporation (CDC) secured six more lease agreements.
Air Products, Famous Brands, AfriSam and APM Terminals, besides others, each signed contracts valued at R300-million, R20-million, R634-million and R25-million respectively, said CDC spokesperson Ayanda Vilakazi on Monday.
Last year, the CDC had attracted R4.1-billion in new investments after securing seven commitments, including GDF Suez, EAB, First Automotive Works (FAW), DCD Dorbyl, Tyre Energy Extraction, OSHO Cement and the Newco cheese factory.
The industrial zone boasted a total of about R8-billion in investment at different stages of implementation and permitting and an overall pipeline of R140-billion.
The value of the projects currently under construction was estimated at R350-million. This was expected to increase to R700-million by the second quarter.
Chinese car and truck manufacturer FAW had started construction works on its trucks assembly plant in Zone 2. The truck assembly facility was expected to produce 5 000 trucks a year – 70% of which were targeted for export.
Work on the foundations and columns and other activities, as well as civil works, had progressed well, with steel erection expected to start in mid-March. The construction project was expected to be complete and production started by February or March 2014.
The group was expected to inject R280-million into the first phase truck assembly section of the project. Overall, FAW would invest R600-million in all the phases on 40 ha through joint funding provided by FAW and the China–Africa Fund.
Meanwhile, construction on Famous Brands’ 2 400 m2 cold storage and distribution centre within Zone 1 had also progressed well, with commissioning expected in June.
The group was also involved in Coega Cheese, a joint venture with Coega Dairy, which would see the launch of a cheese factory to supply cheese to Famous Brands’ franchise stores in the Eastern Cape.
“Beyond the N2 in the Coega IDZ, construction is taking place at Coega Cheese, Agni Steels and the Rehau extension in the Nelson Mandela Bay Logistics Park. Wind turbine parts manufacturer, DCD, and industrial gas supplier Air Products will also start construction in the new financial year,” Vilakazi said.