Cape attracts billion-rand manufacturing investment

A Czech company is set to
invest more than a billion
rand in the Western Cape
following a decision to build
its new manufacturing facility
in Atlantis in the province.
Pegas Nonwovens, a
manufacturer of non-woven
fabrics, is hoping to start
construction of the facility
no later than September this
year when the first phase of
the three-phase project kicks
off with a capital investment
of around R80 million.
According to Nonwovens
CEO Frantiçek Rezac, at least
200 people will be employed
in the facility within six years
with many being trained in
the Czech Republic.
“This is an important
investment for us and is
central to our African growth
strategy,” said Rezac. “We
initially looked at Botswana
and then several other
southern African locations
for the manufacturing
facility before considering the
Western Cape.
“Infrastructure availability,
including stable electricity
supply, are crucial elements
for our production process
and featured high in our
decision-making process. The
Western Cape government
has been able to provide us
with that infrastructure.”
He said the commitment
from the government in
the Western Cape to reduce
red tape and to provide
an environment where
manufacturing could flourish
had made all the difference.
Final discussions are
already under way to
purchase the 38 000-sqm
land from the City of Cape
Town.
“We hope to see operations
start as soon as 2018 but it
will take about 30 months to
install the new production line
to its full capacity.”
He said all building
materials during the
construction as well as all raw
materials during operations
would be sourced locally.
The machines used in the
production would be imported
as they were fitted with the
latest German technology – a
crucial element in the quality
of the product.
According to Cape Town
mayor Patricia de Lille,
the City has agreed to waive
its fee for the development
application for both the land
use planning application and
the building plan approval.
“We have also committed
to fast-tracking the
development applications,”
she said. “We will ensure
the land use application
is completed within three
months and the building
plan approval in five days.”
She said effectively a
R1-million discount on
development contributions
was being made to Pegas.
CAPTION
Frantiçek Rezac, CEO of Pegas Nonwovens, addresses a press conference attended by Cape
Town mayor Patricia de Lille, Western Cape Premier Helen de Zille, and Into SA CEO Ralph
Erntner.