The Manufacturing Circle will work with Gauteng Premier David Makhura on an action plan to revive the Vaal Triangle and arrest the decline of manufacturing in the region.
“The Vaal Triangle rejuvenation project is being driven by the CEO Initiative, which Manufacturing Circle chairperson André de Ruyter is coordinating,” says Manufacturing Circle executive director Philippa Rodseth.
“While we have buy-in from industry in the area, we also need government backing. The Premier has agreed to set up a task team to work on this,” she adds in a statement.
She warns that the Vaal Triangle is turning into South Africa’s “rust belt”, with significant plant closures, a slow rate of investment and the viability of major production plants under threat.
With its existing road, rail, pipeline, water, health and housing infrastructure, the Vaal Triangle could be turned around to ensure “manufacturing greatness”.
“There are already major raw material producers such as ArcelorMittal South Africa, Safripol, Sasol and Omnia. Downstream manufacturers include Nampak, Dorbyl, Hall Longmore and Scaw metals.”
Rodseth notes that the Manufacturing Circle wants to work with government to access support measures.
These include a favourable tax rate of 15% for existing and new businesses in the Vaal Triangle, if it were to be declared a special economic zone; accelerated depreciation allowances; tax holidays for new investments; recapitalisation allowances; and support for local authorities to ensure electrical and road infrastructure is maintained.
“Manufacturers must make a commitment to continued investment, to job creation, and we must all agree we will commit for the long term,” she said.