Black Industrialist Program Presentation

Presentation of balck industrialist programme companies

1. BLACK INDUSTRIALIST REPORT2021
BLACK
INDUSTRIALIST
PROGRAMME
Parliament briefing by the Department of Trade, Industry and
Competition on the Black Industrialist Programme

2. CONTENTS
Part A Introduction
Part B Performance Overview
Part C Case Studies
Part D Conclusion
2

3. PART A: INTRODUCTION

4. P A R T A : I N T R O D U C T I O N 4
INTRODUCTION
thedtichasamandatetosupport
economicgrowth,jobcreationand
transformation.Thedepartmentuses
industrialdevelopment,tradepoliciesand
competitivenessmeasurestobroaden
empowermentandeconomicinclusion.
Thispresentationaddressesoneaspectof
thedtic’sbroadtransformationmandate,
focusingmainlyonthedepartment’s
supporttoblackindustrialists.

5. INTRODUCTION
•Transformation
•Empowerment policies for
transformation
•Evolution of empowerment
policies
•Challenges
•Observations
•Beyond shareholding
•Focus on industrial expansion:
The Black Industrialist Policy
P A R T A : I N T R O D U C T I O N 5

6. INTRODUCTION CONT………
P A R T A : I N T R O D U C T I O N 6
Thepresentationhighlightssomeoftheworkofthe
DepartmentofTrade,IndustryandCompetition(thedtic),
indevelopingandsupportinganewclassofSouthAfrican
industrialists.
•Overthelastfiveyears,someR4billionhasbeeninvested
throughfundinginitiativeswithinthedticinnearly135black
industrialistbusinesses.
•Thisfundinghassupportedthecreationofnewanddynamic
enterprisesinanumberofcriticalvaluechainsacrossallnine
provinces,crowdinginadditionalinvestmentfromtheprivate
sectoraswellascreatingandsavingabout6900jobs.
•Overthenextfiveyears,wewillseektoinvestinnewindustries
whichcanreduceourrelianceonimportsby20%andboostour
economicoutput.

7. INTRODUCTION CONT………
P A R T A : I N T R O D U C T I O N
7
•The presentation provides details of some of the supported
black industrialists by the dticover this period.
•Case studies cover a range of productive sectors:
•food production
•clothing and textiles
•electrical equipment
•furniture and wood products
•chemicals and plastic products
•metals and engineering
•automotives
•construction and building

8. PART B: PERFORMANCE
OVERVIEW

9. Performance Overview
P A R T B : P e r f o r m a n c e O v e r v i e w 9

10. the dtic:BLACK INDUSTRIALISTS BY PROVINCE
STIMULATING
INVESTMENT TO
UNLOCK
INCLUSIVE
ECONOMIC
GROWTH,
CREATING JOBS
AND
POSITIONING
SOUTH AFRICA
FOR
SUSTAINABLE
RECOVERY
FOSTERING AND STRENGTHENING BROAD -
BASED INDUSTRIALISATION IN
ECONOMICALLY DEPRESSED AREAS OF
SOUTH AFRICA
P A R T B:P e r f o r m a n c e O v e r v i e w 10

11. INVESTMENTS BY STRATEGIC SECTORS
INJECTING NEW
ENTREPRENEURIAL
DYNAMISM ACROSS
A DIVERSE RANGE
OF SECTORS BY
SUPPORTING
BLACK
INDUSTRIALISTS
P A R T B : P e r f o r m a n c e O v e r v i e w 11

12. PART C:CASE STUDIES

13. CASE STUDIES:
AGRICULTURE
AND AGRO-
PROCESSING

14. AFRICA SUN OIL (PTY) LTD
Foundedin1997,AfricaSunOil(Pty)Ltdisa
blackentity-ownedcompanyproducingsoya
beanoil,sunfloweroil,maizeoil,palmoiland
candles.Thecompany’smainofficeisin
Durban,KwaZulu-Natal,buttheoperation
expandedtoGautengin2007.
thedtic-fundedprojectsupportedthecapacity
expansioninGautengthroughacquisitionof
machineryandequipment,commercialvehicles
andtheconstructionofwarehousesandstorage
tanksforcrudeoils.
Throughtoincreasetheircapacity,theprojectis
replacing5%ofimportedsunfloweroil,while
reducingoilwaste.
P A R T E : C A S E S T U D I E S | A G R I C U L T U R E A N D A G R O-P R O C E S S I N G 14

15. EASTERN TRADING (PTY) LTD
EasternTradingisalargeproduceroftomato
paste,includingAllJoy.Ithasenlisted80small
andmediumfarmersintheTzaneenareato
supplytomatoes.
Theprojectreceivedagrantfromthedtic’sBIS
tosupportitsexpansionplans.
Thegrantfundedmachineryandequipment
andbusinesssupportforitsTzaneentomato
pasteplant,whosecapacityhasgrownfrom100
tonsadayto500tons.
P A R T E : C A S E S T U D I E S | A G R I C U L T U R E A N D A G R O-P R O C E S S I N G 15

16. MAJESTY OIL MILLS (PTY) LTD
MajestyOilMillsreceivedthedticfundingfor
machineryandequipmentandownedbuildings.
Theprojectisanexpansionofanexistingfacility,
whichemploys252peopleandmanufacturessoya
andsunflowerproductssuchascookingoiland
soyade-oiledcakefortheanimalfeedindustry.
Theplanthasbeencommissionedandisproducing
500tonsofsoyaseedaday,whichwillreduce
quantitiesofimportedsoyabeanoilcakeandsoya
beanoil.Aninvestmentinthehotdehullingplant
enabledtheprojecttoincreasecrushvolume,
whichhasdecreasedthecostpertontoR250.
Energysavingmeasuresinstitutedhaveimproved
energyuseandloweredenergycosts.
AtthetimeofthelatestclaiminSeptember2020,
theprojectreportedthatlocalprocurementwas
62%andthatithadincreaseditsmarketsharefor
oilproductsfrom16%atapplicationstageto39%.
P A R T E : C A S E S T U D I E S | A G R I C U L T U R E A N D A G R O-P R O C E S S I N G 16

17. THE NOODLE FACTORY
In2009,MohammedParkerapproachedtheIDC
foraloantoestablishSouthAfrica’sfirst
independentinstantnoodlemanufacturer.
Afterobtainingfurthergrantfundingfromthe
dtic,heimportedthenecessarymanufacturing
equipment.
Fromemployingfewerthan10people,thenewly
mintedblackindustrialistemployed109full-time
employeesin2018.WhiletheCovid-19pandemic
hasaffectedconsumerspend,productioncapacity
shouldgrowonceconsumerdemandpicksup.
Onceoperational,TheNoodleFactory’snew
productionlineisexpectedtobethesinglelargest
noodleproductionfacilityinSouthAfricaand,
mostlikely,onthecontinent.
P A R T E : C A S E S T U D I E S | A G R I C U L T U R E A N D A G R O-P R O C E S S I N G 17

18. SAUCY SECRETS CC
In2008,RashaadMusaandRicardoFerreira
identifiedanopportunitytomanufacturesauce
forthelow-andmiddle-incomemarkets.
SaucySecretssuppliessupermarketsand
caterersintheEasternCape.Theblack
industrialistfundingenabledthecompanyto
obtainaccreditations,expanditsproductlines
andprintitspackagingin-house.Itsubsequently
expandedintostillandflavouredwater,
carbonateddrinks,cordialsandsquashes.Italso
diversifiedintoblownbottlesandblendedand
concentratedjuices.Theinvestmentinprinting
allowsSaucySecretstodesignandproduce
high-qualitybrandingforcustomers.Theproject
sourcesallrawmaterialsdomestically.
P A R T E : C A S E S T U D I E S | A G R I C U L T U R E A N D A G R O-P R O C E S S I N G 18

19. SIYAYA BRANDS (PTY) LTD
SiyayaBrands(Pty)Ltdstartedoperationsin2009
intheproductionanddistributionofkettlefried
crisps,pelletsnacksandcoffee.Thecompanyhas
sinceinvestedinadditionalmachineryand
equipment,buildingimprovementsand
commercialvehicles.
ExportsintotheSouthernAfricanDevelopment
Communityincreasingsignificantly.Itsproduct
qualityhasgivenSiyayaBrandsacompetitiveedge
andithassecuredsalesagreementswith
householdSouthAfricanretailbrands.Forthe
kettlefriedcrisps,totalprocurementisfromthe
localmarket.Atapplicationstage,thecompanydid
nothaveanyblacksuppliers,butbythesecond
stage,inMarch2020,60%ofpackagingmaterial
andoilwereprocuredfromblack-ownedsuppliers.
Thecompanyhasalsoconverteditselectricity
burnersintogasburners,whichhassubstantially
loweredelectricitycosts.
P A R T E : C A S E S T U D I E S | A G R I C U L T U R E A N D A G R O-P R O C E S S I N G 19
Source: https://www.elbers.co.za

20. SUNOLA OIL MILLS
SunolaOilMillsintendstoexpandto
manufacturevegetableoilsforhuman
consumption.Approvalwasgrantedfor
machineryandequipment,amanufacturing
facilityandcommercialvehiclesandequipment,
installationis80%complete.InOctober2020,
theprojectwasanticipatingstartingcommercial
productionbyDecember2020.
Thecompanyhasconsolidatedits
competitivenesswiththepurchaseoftwonew
superlinktrucksCross-borderopportunities
haveemergedinSwazilandandarecurrently
beingexploredinBotswanaandAngola.
P A R T E : C A S E S T U D I E S | A G R I C U L T U R E A N D A G R O-P R O C E S S I N G 20
Source: http://www.goldenglo.co.za

21. CASE STUDIES:
AUTOMOTIVE

22. RONDEX PARTS (PTY) LTD
RondexParts(Pty)Ltdisexpandingto
manufacturebrakepads,withapprovalgranted
formachineryandequipment,commercial
vehiclesandtheconstructionofanewbuilding.
Thecompanycurrentlyimportsallheavyduty
andlightcommercialbrakepads,butimport
dependencewilldroponcelocalproduction
starts,whichwillhavecostandorder
turnaroundbenefits.
Thenewmachinery,withitsadvanced
technologyinenergyefficiencyandpower
saving,willalsoreduceenergycostsandCO²
emissions.
P A R T E : C A S E S T U D I E S | A U T O M O T I V E 22

23. CASE STUDIES:
CHEMICALS
AND
PLASTICS

24. BLENDTECH (PTY) LTD
Foundedin2015,Blendtech(Pty)Ltdproduces
lubricantsfortheautomotive,miningand
agricultureindustries.
thedticfundedmachinery,equipmentand
commercialvehiclesforautomationthatwill
enhanceproductquality.Theprojectalso
includessophisticatedlaboratoryequipmentto
performinternational-standardqualitytests.
Thefactorywillbedesignedaccordingto
internationalenvironmentalstandardsand
incorporateenergy-savinglighting,solarpanels,
wasterecyclingandhardwaretoreduce
contaminationandoilspillages.
P A R T E : C A S E S T U D I E S | C H E M I C A L S A N D P L A S T I C S 24
Source: https://www.blendtechsa.co.za/about

25. DALISU HOLDINGS
DalisuHoldingswasformedasajointventure
betweenDalisuSpecialityProducts,a100%
black-ownedcompany,andMpacttoprovidea
dust-suppressionservicetotheminingindustry.
Itproducessodiumlignosulphonate,adust
suppressantobtainedfromblackliquor,whichit
isbranded.Ithasalsodevelopedawayto
producesodiumsulphatefromsaltcake
obtainedfromMpact’spulpingprocess.
TheIDChasfundedtheconstructionofthehigh
purity82tonsadaysodiumsulphateplant,
whichwillcommercialisethisprocess.
P A R T E : C A S E S T U D I E S | C H E M I C A L S A N D P L A S T I C S 25

26. HOTO TRADING AND PROJECTS
HotoTradingandProjectsreceivedfundingfrom
thedtic’sBIStoexpandexistingoperations.The
companyoffersarangeofflexiblepackaging
solutions,flexibleductingandcableinsulationand
sourceslocallyproducedmaterialsfromSouth
AfricanBureauofStandards-approvedsuppliers.
Theprojectiscurrentlyrunningatabout25%to
30%capacityduetoCovid-19,butisshowingsigns
ofrecovery.Thecompanyisabletobuylocally
about90%ofpreviouslyimportedaluminium
polystyrenefilmproducts.About10%ofPET
polystyrenefilmisstillimportedfromChinaand
India.
Thecompanyreportedproductionofabout500
tonsamonthinNovember2020,exportingto
ZimbabweandBotswana.Thenewinvestmenthas
enabledittoconcludeadealwithaUSA-based
companyforitspackagingandcablingproducts.
P A R T E : C A S E S T U D I E S | C H E M I C A L S A N D P L A S T I C S 26

27. INTERSTELLAR PLASTICS (PTY) LTD
InterstellarPlasticswasincorporatedin2012andstarted
operatingin2017afterreceivingsupportfromtheBIS
incentive.Thecompany,basedinMidrand,Gauteng,
manufacturesplasticpackagingcontainersforsoft
drinks,householdcleanersandotherconsumergoods.
TheBISsupportfundedapatentandprovidedrebates
onnewmachinerythatfacilitatestheuseofnewand
recycledrawmaterialsinproductionandtheproduction
ofcustom-designplasticpackaging,forwhichdemandis
increasing.Furthermore,BISsupportwasparamountto
thecompany’sreturnoncapitalexpenditureand
improvedmarketaccess.InterstellarPlasticsemploys33
people,allofwhomareblackandfourofwhomare
female.Thecompanyplanstoupskillcurrentstaffand
recruitafurther50peoplein2021.
DuetoCovid-19,InterstellarPlasticshasputplanned
projectsonholdandisproducingmorepackagingfor
fastmovingconsumergoodssuchassoaps,detergents
andsanitiser.Newmarketshavebeencapturedand
thereispotentialtoexportanti-bacterialandanti-viral
packaging.
P A R T E : C A S E S T U D I E S | C H E M I C A L S A N D P L A S T I C S 27

28. KEVALI CHEMICALS
PoolingtheirsavingsandsupportedbyanIDC
loanandincentivefundingfromthedtic,three
blackindustrialistslaunchedthe100%black-
ownedKevaliChemicalsin2014.
In2018,itopeneda3000m²chemicalplantin
Harrismith’sMaluti-A-Phofungspecialeconomic
zone,whereitmanufactureschemicalsfor
hygieneandsanitation,watertreatmentand
adhesives.
Owningtheplantratherthanrentinghas
allowedthecompanytoreviewprocessesand
eliminatestepsusingenergy.Theprojecthas
alsoimplementedwatersavingtechnologies.
P A R T E : C A S E S T U D I E S | C H E M I C A L S A N D P L A S T I C S 28

29. LALI ROTHE PLATINUM REFINERIES SA
LaliRothePlatinumRefineriesSAisinterestedin
establishingaturnkeyplanttorecoverhigh-value
metalssuchasgold,silverandpalladiumfrome-
wasteorwastefromelectricalandelectronic
equipmentsuchascircuitboards.Thesemetals
arethenconvertedintospecificchemicalproducts,
includinggoldpotassiumcyanide,silvernitrate,
palladiumchlorideandcoppersulphate.The
projectinvolvesbuyingmachinery,equipmentand
commercialvehicles,buildingrenovationsand
businessdevelopmentservices.
Theprojectwilleliminatetheneedforimportsand
100%ofrawmaterialswillbesourcedlocally.All
manufacturingoperationswillbeenvironmentally
friendly,withlowcarbonemission,eco-efficiency
andenergysaving.
Theprojectwillalsocreateemploymentin
Hammanskraal,aruralareawith70%
unemployment.
P A R T E : C A S E S T U D I E S | C H E M I C A L S A N D P L A S T I C S 29
GREEN
ECONOMY

30. VERIGREEN
The Pinetown-basedplasticsproducts
manufacturerwasfoundedbyMikeandThina
Maziyain2001.
Verigreen’sgrowthhadbeenhamperedbyalack
ofcapitaltosustainbusinessmomentumand
insufficientresourcestopursuenewopportunities
untilfinancialassistancefromthedticenabledit
toincreaseproductionfrom420tonsamonthto
800tons.Thecompanyhad91full-time
employeesin2017,whichhadincreasedto159by
March2020.
Verigreen’scorporatesocialinvestmentinitiative
‘TheSupaMamaProgramme’startedin2012has
assistedabout300‘mamas’inKwaZulu-Natalto
deriveanincomefromthecollectionofrecyclable
wastefromtheirlocalcommunities.Therecycled
wasteisthenusedinVerigreen’sproduction
process.
P A R T E : C A S E S T U D I E S | C H E M I C A L S A N D P L A S T I C S 30

31. CASE STUDIES:
CLOTHING
AND
TEXTILES

32. KORTEX TEXTILES AFRICA (PTY) LTD
KorteksAfricaisawhollyownedandoperated
SouthAfricancompanybasedinCenturion,
Gauteng.Producingcurtaintextiles,thecompany
useditsBISfundstobuyacoatinglinetobeadded
onitsexistingmachinery.Thisenabledthe
companytoproduceblock-outcurtainfabric
withoutrequiringastitched-inlining,whileadding
tothedurabilityofthecurtain.Anoutdated
embroiderymachinewasreplaced,which
increasedcapacitytomeetgrowingdemandand
upscaleitsproducts.Thecompanyprocuresmost
rawmaterialsfromlocalsuppliers,most
independentretailers.
AsaresultofCovid-19,thecompanyhaslost
revenueandlaidoffsomeemployees.Itisnow
developingnewproductsandproducestoorder.It
hasstartedproducingthree-plyclothmasksandis
consideringmedicalgownsandlinen.
P A R T E : C A S E S T U D I E S | C L O T H I N G A N D T E X T I L E S 32

33. SYCAMORE TRADING (PTY) LTD
ObservingafundamentalshiftintheEuropean
textileindustrythroughdigitalprinting,Sudhir
Harilall,havingmorethan30years’experiencein
theindustry,decidedtostartmanufacturing
textileslocally.Initiallylackingequipment,raw
materialsandskills,helookedtothedtic.
Theresultantfundingenabledthecompanyto
startexportingnarrowfabricstoEuropeand
reduceimportsofdigitalprintfabrics.Theproject
improvedtheprintqualitywithnowastageof
delicatefabric.Recycledwaterisusedin
manufactureandanonsiteboreholereduces
relianceonmunicipalwater.Thecompany
procures64%ofitsinputslocally-42%fromblack
suppliersand19%fromblackfemalesuppliers.
Thefactoryissituatedbetweentwotownships,
PhoenixandCornubia,andmoststaffhailfrom
theseareas,themajoritybeingyoungpeople.
P A R T E : C A S E S T U D I E S | C L O T H I N G A N D T E X T I L E S 33

34. CASE STUDIES:
ELECTRICAL
EQUIPMENT

35. BK ELECTRICAL (PTY) LTD
Thisblack-ownedcompanyfoundedbyaformer
Eskomemployeestartedoperatingin2019.It
manufacturesconduitpiping,squaremoulding
andotherinjection-mouldingproducts.
Withthedticfunding,machineryand
equipmentwasboughtandthemanufacturing
plantconstructed.Theprojectisworkingwith
engineerstoensurethatitsproductsareenergy
efficientandlowcost.
P A R T E : C A S E S T U D I E S | E L E C T R I C A L E Q U I P M E N T 35

36. REVIVE ELECTRICAL TRANSFORMERS (PTY) LTD
ReviveElectricalTransformers(Pty)Ltd,basedin
Kliprivier,Gauteng,wasestablishedin1997andis
nowoneofthelargestdistributiontransformer
manufacturersinAfrica.Thecompanysupplies
transformerstoEskomandSouthAfrican
municipalities,andexportstoBotswana,
DemocraticRepublicofCongo,Ghana,Lesotho,
Malawi,Mozambique,Namibia,Swazilandand
Zambia.
ThroughBISsupport,Revivehasimprovedthe
qualityofitstransformers,whichitproducesata
rateofmorethan1500amonth.
Althoughproductivityandturnoverwere
negativelyimpactedbyCovid-19,thecompany
wasabletocontinuetradingasanessential
serviceprovider.
P A R T E : C A S E S T U D I E S | E L E C T R I C A L E Q U I P M E N T 36
Source: http://bkelectrical.co.za

37. SEALTRON SA CC
SealtronSAccmanufacturesandassembles
cableharnesses,injectionmouldingandprocess
cablefortheautomotive,whitegoodsand
utilitysectors.Fundingwasapprovedfor
machineryandequipment,commercialvehicles
andbuildingacquisition.
Thenewmachineryandequipmenthave
reducedelectricitycostsby20%,haveincreased
productivityby30%andsignificantlyimproved
productquality.Theyhavealsoallowed
diversificationintomanufacturingofsmall
appliances(two-platestoves).
SealtronSAhasemployedworkersfrom
Cornubia,Verulam,UmlaziandPhoenix.
P A R T E : C A S E S T U D I E S | E L E C T R I C A L E Q U I P M E N T 37
Source: http://www.sealtron.co.za

38. CASE STUDIES:
FORESTRY
AND WOOD
PRODUCTS

39. EAST COAST BOARD (PTY) LTD
Founded in 2019, East Coast Board (Pty) Ltd is a
100% black-owned company producing hardboard,
soft board, shutter ply, chipboard and postform
tops to make furniture and coffins.
the dtic funded machinery and equipment,
commercial vehicles and building improvements,
as well as conformity assessment certification.
This expansion has improved efficiency and
ensured that products are world class goods and
comply with European quality standards. All waste
is recycled and supplied to recyclers who turn it
into pellets for further use. The company procures
all inputs locally, 30% from black South Africans.
P A R T E : C A S E S T U D I E S | F O R E S T R Y A N D W O O D P R O D U C T S 39

40. GOLDEN ERA PRINTERS & STATIONERS
GoldenEraPrinters&Stationerswasstartedin
1955byBhoolaChhita,withtwopaperbag
manufacturingmachines.Itisnowthelargest
family-ownedprintingandpackagingbusiness
inSouthAfrica,manufacturingawiderangeof
printingandrelatedproductsincludingcans,
aerosols,corrugatedcartons,carrierbags,kraft
paper,shrinksleeves,flexibles,self-adhesive
labels,blisterpacksandthermoformedtrays.
TheIDCapprovedfundingforthecompanyto
buyaflexographicprintinglinefromSwitzerland
toincreaseitsproductioncapacityinlinewith
demandfood,drinksandhealthcareproducts
packaging.
P A R T E : C A S E S T U D I E S | F O R E S T R Y A N D W O O D P R O D U C T S 40
YOUTH
EMPOWERED
WOMEN
EMPOWERED

41. PROXIMO 101 INVESTMENTS/GQ TISSUE PAPER
GQ Tissue Products specialises in facial tissue
products.
The company decided to backward integrate its
converting operations by establishing a tissue
paper mill to make the jumbo rolls it had been
importing.
IDC funding allowed GQ to make its own tissue
paper and to produce facial and pocket tissues
and wet-wipes with additional production lines.
This grew the customer base, increased
production capacity and allowed for bigger
stockholding.
P A R T E : C A S E S T U D I E S | F O R E S T R Y A N D W O O D P R O D U C T S 41
YOUTH
EMPOWERED
WOMEN
EMPOWERED

42. SACKS PACKAGING
SacksPackagingreceivedaboutR50million
fromthedtic’sBIStosupportexpansion.It
boughtmachineryandequipment,whichhas
madeitsproductsinternationallycompetitive
andreducedcompetitionfromimports.
SacksPackagingproducespaperbagsfor
AfrisamCement,Snowflake,WhiteStar,Iwisa
andHulets.
P A R T E : C A S E S T U D I E S | F O R E S T R Y A N D W O O D P R O D U C T S 42

43. SAM’S TISSUES (PTY) LTD
SinceSamJadastartedhisbusinessmorethan50
yearsago,convertingwastepaperfrommillsinto
toiletandtissueproductsfortheGautengmarket,
ithasgrownsteadily.Thecompanyopenedthree
papermillsovertheyears–inHeidelberg,Ga-
RankuwaandKrugersdorp–tosourceandprocess
rawmaterials,andthenmanufacture,packageand
distributeitsowntoiletpaperforthemassmarket.
WithfundingfromtheIDCforcapitalexpenditure
andworkingcapital,thecompanyprocureda
papermillfromMexico.thedticsupportedSam’s
TissueProductswiththecapitalformodern,
innovativeGambinitissue-convertingmachinery
andaTMCpackagingmachine.Thishassimplified
andimprovedthebusiness’sproductionprocess,
whileincreasingitsflexibilityandenhancingits
safetyprotocols.
CommissionedinJanuary2019,thenewplantis
abletoproduce24000tonnesoftissueproductsa
year–fivetimesthefirm’spreviouscapacity.This
hasincreasedthebusiness’scompetitivenessin
theSouthAfricanmarket.
P A R T E : C A S E S T U D I E S | F O R E S T R Y A N D W O O D P R O D U C T S 43

44. THE FX GROUP (PTY) LTD
TheFXGrouplaminatesmelamine,foil,postformtops,
UVgloss,acrylicglossandveneersforawidevarietyof
applications,includingkitchencupboards,tablesand
coffins.
WiththesupportoftheBIS,thecompanyintendsto
expandintochipboardproductionforfurniture
manufacturingtocapturealargerlocalmarketshare.
Manyofthecompany’semployeesarefromthenearby
townshipandtheGertSibandedistrict,where
unemploymentisover50%.Byprocuringallitsraw
materialslocallyfromsmallinformalbusinesses,the
projectpromotesthesocio-economicdevelopmentof
thearea.
Toovercomecashflowproblemsresultingfromlost
incomeandincreasedexpensesduetoCovid-19,
expenseswereslashed,withstaffsalariesbeingreduced
by20%.Thecompanyisidentifyingpossiblenewexport
opportunitiestoChinaasaresultoftheweakened
exchangerateandhasopenedtwonewstoresin
Limpopotorespondtoincreaseddemandforhome
renovations.
P A R T E : C A S E S T U D I E S | F O R E S T R Y A N D W O O D P R O D U C T S 44

45. TORONTO GROUP (PTY) LTD
Toronto Group (Pty) Ltd will manufacture
charcoal for the export market (Europe) and
also activated carbon for water treatment and
purification. The project will use eucalyptus and
acacia wood supplied by a subsidiary company
that has contracts (such as Working for Water)
to clear these alien, invasive species.
The project has been approved for an
environmental impact assessment feasibility
study and for construction of the charcoal-
manufacturing plant inclusive of machinery and
equipment. Construction of the facility is 55%
complete and the project is scheduled to go live
by August/September 2021. All procurement
during construction has been 100% local, 30%
from black suppliers.
P A R T E : C A S E S T U D I E S | F O R E S T R Y A N D W O O D P R O D U C T S 45

46. CASE STUDIES:
METALS AND
ENGINEERING

47. ALCU PRODUCTS (PTY) LTD
AlcuProductsisa100%black-ownedand-
managedmanufacturerofaluminiumand
copper.Thefinishedorsemi-finishedproducts
arethensoldtoendusers.
Thecompany,whichstartedoperatingin
January2009,appliedforBISfundingforan
expansionprojectandreceivedsupportforthe
purchaseofabuildingandmachineryand
equipment.
ProductionstartedinOctober2019butwas
haltedinAugust2020toremovethemachine
whileanewpitwasbuiltforittooperate
effectively.Productionisexpectedtoresumein
April2021.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 47
Source: http://www.alcu.co.za

48. D-FENCE
D-FenceManufacturing(Pty)Ltdisablack-owned
entity.Thecompany,thefirstblackentityinwire
andfencingmanufacturing,willmanufactureline
wires.Fundingwasapprovedformachineryand
equipment,commercialvehiclesand
implementationofaneffectivefactory
managementaccountingreportingprocess.
ByAugust2020,theprojecthadnotstarted
manufacturingactivitiesasthemachineryand
equipmentwerestilltobedeliveredfromChina,
thescheduleforbothdeliveryandinstallationby
internationalengineershavingbeendisruptedby
Covid-19.
Oncerunning,thecompanywillboostlocal
manufactureofwireandfencingandwillminimise
logisticscostbysourcingprimarilyfromGauteng.
ManufacturingwilltakeplaceinEastLondon
factory,withlow-energyconsumptionmachines
andminimalwateruseofwater.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 48

49. INKWALI FABRICATION AND MAINTENANCE
Foundedin2005,InkwaliFabricationand
Maintenance(Pty)Ltdisa100%black-owned
companymanufacturingsteelplates.
thedticisfinancingmachineryandequipment,
commercialvehiclesandbuildingstoexpand
existingoperations.
Onceoperational,thecompanywillenhanceits
productandimproveitsresourceefficiency,
reducingoperatingcosts.Itwillalsosupply
materials(currentlyimported)toautomotive
componentmanufacturersandexportmaterials
tominesintheSouthernAfricanDevelopment
Communityregion.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 49
Source: http://inkwali.co.za

50. MBALI INDUSTRIAL SOLUTIONS
MbaliIndustrialSolutionsccisa100%black-
ownedone-stopindustrialsupplyservice,serving
GautengandMpumalangacustomers.The
expansionoftheexistingfacilityisproviding
technicalservicestothemining,sugar,cement,
steelmills,powergenerationandpetroleum
sectors.Theentitiescoreservicesarefabrication,
engineeringprecisionandturning,general
mechanicalandgearcuttingaswellasrollsand
tires.
Withthefundsreceived,thecompanybought
machinery,equipmentandcommercialvehicles
andalsocompletedbuildingconstruction.
Theprojecthasintroducedsolarpoweranduses
weldedplatesforlowerimpactonnatural
resource.Contractshavebeenobtainedfrom
Eskom,miningcompaniesandconstruction
entities.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 50
Source: https://mbalisolutions.co.za

51. NDALAMA ARMATURE WINDERS CC
ThecompanyrepairsACandDCmotors,water
pumps,gearboxes,brakes,transformersand
locomotives.Ithasusedthesupportfromthe
dticandIDCtofundmachineryandequipment
thathasincreasedefficiencyandreduced
energyconsumption,andtobuynewbuildings.
TheCovid-19pandemicreducedthenumberof
ordersreceived,butratherthanretrenchthe
owneroptedreduceworkinghourstopreserve
jobs.InMarch2021,theprojectreportedthat
businesswaspickingupandthatanumberof
agreementsfor2021hadbeensignedinlate-
2020.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 51
Source: http://www.ndalamawinders.co.za

52. PINION & ADAMS (PTY) LTD
Pinion&Adams(Pty)isasheetmetal
fabricatingandmanufacturingcompanythat
countsamongitscustomersBell,CashConnect
Group,NDEngineersandBoschProjects.Ithas
alsoprovidedprojectsforentitiessuchas
GatewayandSunCoastCasino.
Fundingwasapprovedformachineryand
equipment,buildingimprovements,commercial
vehiclesandbusinessdevelopmentservices.
Theentityhassecuredacontractwiththe
PassengerRailAgencyofSouthAfricato
manufacturecurrentlyimportedcomponents.
Atthetimeofthesecondfundingclaim,the
entityhadprocuredR79millionfromSouth
Africansuppliers.Allelectricheatedovenshave
beenconvertedtogas-heatedovens,lowering
energycosts.Productqualityhasimprovedand
rejectionrateshavedeclinedmarkedly.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 52
Source: https://www.pinionadams.co.za

53. REEF PROFILE CUTTING SERVICES (PTY) LTD
ReefProfileCuttingServices(Pty)Ltdisasteel
servicecentrethatmanufacturessteel
componentsformining,motor,armouredvehicles,
solarandotherindustries.Servicesinclude
bending,rolling,cutting,drillingandfabrication.
Theexpansionprojecthasbeenapprovedfor
machinery,equipmentandcommercialvehicles.
Thecompanyreportsthatthequalityofproducts
hasimprovedby80%withthenewlypurchased
equipment,whilethecuttingtechnologyhas
improvedbothqualityandturnaroundtime.The
newmachineryisalsosavingenergyandmaterial
costs.
Theprojectprocures90%ofitsinputslocally,with
procurementfromblackSouthAfricansuppliers
havingincreasedfrom30%to50%.Annual
domesticmarketshareoftheproducthas
increasedby40%.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 53

54. TW PROFILE SERVICES
TWProfileServiceshasbeeninvolvedinplasma
cutting,lasercutting,flamecutting,guillotine
cutting,bending,rolling,drillingandchamfering
since1994.
Thecompanyis51%blackowned.Itsexpansion,
withnewlyacquiredmachineryandequipment,
hascreatedfiveadditionaljobsandretained
325baselinejobs.Thenewnitracutplant
generatesnitrogen,eliminatingtheneedtobuy
thisgas,whichisrequiredforthedailyrunning
ofoperations.
P A R T E : C A S E S T U D I E S | M E T A L S A N D E N G I N E E R I N G 54

55. CASE STUDIES:
CONSTRUCTION
AND BUILDING
MATERIALS

56. NATURECELL (PTY) LTD
Naturecellisa67.5%black-ownedinsulation
manufacturingbusinessapprovedtobuildan
insulation-manufacturingplantinEkurhuleni,
Gauteng.Theprojectisstrategicallypositionedto
becomeoneofthelargestsuppliersofbuilding
insulationmaterialsinthecountryandtherestof
theSouthernAfricanDevelopmentCommunity
region.Theprojectisco-fundedbytheIDC.
Naturecell’sproductismanufacturedfrommore
than80%reclaimedsustainablerawmaterial
madeofrecyclednewsprint.Theproductisa
celluloseinsulationmatthatisinstalledabove
ceilingstoimprovetheenergyefficiencyof
buildings.Theprojectisnotyetfullyoperationalas
deliveryofamachinebeingshippedfromtheUSA
wasdelayedbyCovid-19.Theprojectexpectsto
startproductionbyOctober2021.
P A R T E : C A S E S T U D I E S | P R O P E R T Y , C O N S T R U C T I O N A N D B U I L D I N G M A T E RI A L S 56

57. STONECO IMPORTERS AND EXPORTERS (PTY) LTD
StoneCoImportersandExporters(Pty)was
establishedin2016tosupplywholesaleand
retailstone.Initially,thefocuswasonproviding
theretailmarketwithpre-cutstoreslabsfor
countertops,butithassincediversifiedintoa
widerangeofstoneproductsandselection.
Fundingwasapprovedtobuymachinery,
equipment,buildingsandcommercialvehicles.
Thenewmachines-chosenfortheirinnovation,
efficiency,energyeconomyandreduced
wastage-arereportedtohaveimproved
productquality,producingmorerefinedfinishes
andedgingscomparedtothoseproducedby
theprevioushandheld,manuallyoperated
machines.
P A R T E : C A S E S T U D I E S | P R O P E R T Y , C O N S T R U C T I O N A N D B U I L D I N G M A T E RI A L S 57

58. THE INSULATION COMPANY SA
TheInsulationCompanyisagreenfield
operationfortheproductionofpolyurethane
insulatedmetalandboardpanels,alsoknown
asmetalinsulatedsandwichpanelsandflexible
facedboardsforbuildingandinsulation
applications.Itwillbefirstfacilityofitskindin
SouthAfrica.
IDCfundingwillbeusedtorefurbishasecond-
handplant,acquirenewequipmentand
conductamarketstudy.Thebusinessisowned
andmanagedbyTrevorMashabane,whohas
internationalpartners.
P A R T E : C A S E S T U D I E S | P R O P E R T Y , C O N S T R U C T I O N A N D B U I L D I N G M A T E RI A L S 58
GREEN
ECONOMY

59. ZK ROOF TILE MANUFACTURERS
ZKRoofTileManufacturersisastart-up
concreterooftilemanufacturerregisteredin
2017byZohra,Faheem,MubeenandAhmed
Khan,whohadidentifiedamarketgapforroof
tilesandridgesinthePolokwanearea.
TheIDCprovidedfundingforthecompanyto
buymachinerytomanufacturethetiles.The
projectwasdelayedbytheCovid-19pandemic,
butthefactorypromisestocreate67jobsonce
operational.
P A R T E : C A S E S T U D I E S | P R O P E R T Y , C O N S T R U C T I O N A N D B U I L D I N G M A T E RI A L S 59
WOMEN
EMPOWERED

60. PART D: CONCLUSION

61. CONCLUSION
Thereportprovidesasnapshot
ofworkbeingdonebythe
departmentanditsentitiesand
showsthetypeofeconomic
activitiesthatarepromotedand
encouragedthroughbroad-
based black economic
empowermentprogrammes.

62. END
THANK
YOU