Consumer goods manufacturer Procter and Gamble (P&G) will build a R1.6-billion greenfield manufacturing facility in South Africa, the company’s vice-chairperson in charge of its global business units Dimitri Panayotopoulos has revealed.
Construction on the multicategory production plant would start in 2014, with first production expected in 2016 or early 2017.
The plant, which would be built on a greenfield site which the company would acquire in the near future, would become one of the largest P&G facilities in Europe, the Middle East and Africa and would create 500 new jobs.
The location of the site would be announced once all the preparations had been concluded.
“We aim to make South Africa P&G’s manufacturing hub for the markets of Southern and East Africa. Our global strategy is to maintain our strong momentum in developing markets. Africa, in general, and South Africa, in particular, are of key importance to us.
“As in all developing markets, our business here in Africa will remain focused on brands that improve health, hygiene and household care, as well as substantial social investment programmes that uplift underprivileged families and communities,” said Panayotopoulos.
“This announcement is a further example of confidence by P&G in the future of South Africa. Since P&G entered the South African market, it has contributed to creating environmentally and socially responsible economic growth and, in particular, more South African jobs.
“Such investment clearly demonstrates the confidence in South Africa as an investment destination and South Africa as the gateway into the African continent,” added Trade and Industry Minister Dr Rob Davies.
He further stated that Africa’s integration was imminent as it sought to tackle the challenges posed by its small and fragmented markets, its insufficient diversification of trade and its low levels of intra-African trade.
Davies added that creating larger regional markets would increase specialisation and competition, providing a boost to manufacturing by offering improved economies of scale in industrial production.