The launch of Unilever’s Lords View ice-cream factory, in Midrand, complemented South Africa’s goal to move up the value chain and was a vote of confidence in the country’s economy on a continent that was going to be industrialised, Trade and Industry Minister Dr Rob Davies said earlier this month.

The fast-moving consumer goods supplier’s factory, valued at about R600-million, was one of 40 Unilever ice-cream factories across the world, and “sets new standards in green manufacturing and low-cost manufacturing”, noted Unilever.

“It’s no secret that the South African economy is passing through some difficult times because, among other things, there is a depressed demand [and a falling price] for mineral commodities,” commented Davies.

He emphasised the importance for the South African economy, as well as the rest of Africa, of being more than a producer and exporter of primary prod-ucts. “And it’s for that reason that we have been talking for a long time about moving up the value chain, about industrialising the country, about seeking industrial development through a number of ways, but including agroprocessing,” he said at the opening of Unilever’s first ice-cream factory in Africa, built in the Lords View industrial park.

The factory would produce not only Ola prod-ucts such as Rich ’n Creamy, Cornetto, Gino Ginelli, Paddelpop and Fruttare but also the most sophisticated ice-cream in Unilever’s portfolio, Magnum.

“The Lords View ice-cream factory will offer sufficient capacity for the current sales volume to double in size while servicing increased demand for [these] brands,” explained Unilever executive VP of Africa Bruno Witvoet.

The company believes it has proven its con-fidence in South Africa and Africa’s growth potential by investing close to R4-billion in new and refurbished manufacturing facilities in the country.

“If we want to survive for the long term in South Africa, we need to be the best of the best of Unilever,” stressed Unilever South Africa CEO Peter Cowan at the Lords View opening.

The ice-cream factory was supported by the Department of Trade and Industry’s (DTI’s) 12-i Tax Allowance Incentive scheme, which supports greenfield investments (new industrial projects that use only new and unused manufacturing assets) and other projects that benefit the planet.

Davies said the factory, in which the DTI invested R342-million, was an important mile-stone for South Africa and the department was ready to partner with Unilever again. Previously, the DTI had provided R140-million, R168-million and R367-million towards the development of each of Unilever’s other three South African facilities.

“An agroprocessing project like this creates demand for other industries,” he commented, adding that the factory used local milk.

Unilever South Africa VP of manufacturing Sandeep Desai noted that the idea for Project South Pole – the Lords View ice-cream factory – took root in 2011, when Unilever’s chief supply chain officer, Pier Luigi Sigismondi, arrived in South Africa and decided “enough was enough”. The new facility also complements the company’s additional capacity being built in Turkey and China to deliver improved innovations for Unilever, its customers and consumers.

Witvoet noted that the factory was developed to ensure the sustainable growth of the company’s ice-cream business in Africa. He said it was important for growth to be inclusive of the people living in South Africa, highlighting that, through development of the factory, Unilever had employed 150 workers during construction and now employed 150 skilled people, as well as 50 contract workers. Employees were recruited from the communities in the vicinity of the Lords View industrial park.

The company also sold Ola ice-cream on the streets through a network of 1 300 con-cessionaires, which it expected to grow to 2 300 by the end of the year through its Ola Vendor Programme. “There are clearly job opportunities for young people in South Africa.”

Davies agreed, stating that, in the distribution network, there were opportunities for small to medium-sized vendors.

Witvoet explained that Lords View Industrial Park was chosen as the site of the ice-cream factory as sustainability was at the heart of the development, which was in line with Unilever’s sustainable living plan launched in 2010.

“Sustainability, protection of the environment is absolutely key for us.

“In this factory, [which includes] new technol-ogy that we are piloting in Unilever, we find the latest green technology,” he said, pointing out that the factory used “smart, green technology” to harvest rainwater, while recovering and reusing the water used in the production process.

It would also apply a zero waste to landfill policy and feature energy efficient technology.

“The refrigeration and utilities services are specifically designed to reduce the energy consumed through efficient motors, drive mixers and air compressors,” said Desai. “This, combined with decreased water use and responsible waste disposal, has an exponentially positive effect on the factory’s environmental impact.”

“All of our enterprises have to demonstrate that they are more environmentally friendly and lower their carbon footprint. I think the lesson is starting to catch on,” added Davies.

The Lords View factory was further evidence of UK investment in South Africa, said British High Commissioner to South Africa Judith Macgregor, who indulged in Magnum ice-cream fresh off the line for breakfast while on a tour of the facility.

Through the factory, she said, the UK had retained its record as the single biggest investor in South Africa and “one, Mr Davies, I am determined to continue to take forward”.