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.