From Creamer Media in Johannesburg, this is the Real Economy Report. JSE-listed Clover has completed its newly expanded Queensburgh production and distribution facility, in Durban, bringing to a close its three-year Cielo Blu project. Natasha Odendaal reports.

Natasha Odendaal:
Clover’s newly expanded Queensburgh production and distribution facility, in Durban, marked the conclusion of the company’s aggressive three-year, R350-million Cielo Blu project. Clover CFO Jacques Botha explains.

Clover CFO Jacques Botha

Natasha Odendaal:
The Queensburgh facility, which procured an average 290 000 ℓ/d of milk from about 52 milk producers in KwaZulu-Natal, was now the company’s largest factory and second-largest distribution centre when combined with the nearby Pinetown facility.

The R77-million, three-phase expansion project kicked off in February 2012 and concluded in September 2013, with Clover separately injecting R95-million to introduce new products and technologies at the site, which brought the total investment to reorganise and expand the facility’s production and distribution capacity to R171-million.

Jacques Botha

Shannon de Ryhove:
Other news making headlines this week: Problem contracts and labour unrest take their toll on Aveng; and Seifsa is ‘delighted’ by government’s commitment to enhanced industry alliance.

Grinaker-LTA remained a persistent thorn in Aveng’s side for the six months ended December 31, while several claims on large projects also piled on the pressure.

Aveng CEO Kobus Verster

The Steel and Engineering Industries Federation of Southern Africa (or Seifsa) has welcomed government’s commitment to supporting business by creating an “enabling” environment and providing tax incentives for local manufacturing, as expressed by Finance Minister Pravin Gordhan in his 2014 National Budget address.

Seifsa CEO Kaizer Nyatsumba

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.