European tool company could invest R15-m in Eastern Cape

A EUROPEAN tool
engineering company is to
establish a production facility
in the Eastern Cape which
would result in direct foreign
investment amounting to
R12-R15 million.
Crucially, the investment
by Italy-based Ergotech
would also entail a training
and skills development
partnership with the Nelson
Mandela Metropolitan
University (NMMU). This
would address a serious
tooling skills and expertise
shortage not only in the
province, but throughout the
country.
Details of the investment,
which is being facilitated by
the Investment Promotion
Unit of the Eastern Cape
Development Corporation
(ECDC), are currently
being finalised. However,
preliminary commitments
point to the production
facility being operational as
early as mid-2008, probably
at a location in or around
Port Elizabeth.
ECDC was partnered
with Ergotech by Italian
helicopter design and
manufacture specialist
AgustaWestland, in terms
of its commitment to
promoting Italian-South
African investment.
As part of its initial
investment, Ergotech’s
production facility would
provide 9-12 plastic injection
moulding machines, valued
at around R1 million each.
In addition, the company
would donate two moulding
machines, of the same value,
to NMMU as part of its skills
development partnership.
Initial production would
be targeted at about 70%
for export and 30% for the
domestic market.