Richards Bay Industrial Development Zone

COMPETITIVE ADVANTAGES

FOCUS SECTORS

Richards Bay

IDZ

Metals beneficiation

Aluminium

Titanium

Iron ore

Agro-processing

Pulp, Horticulture &

meat production

Port optimization

Containerization, Ship/rig building

& repair

Oil & Gas

Renewable & Clean energy

Solar

Fuel cells

Biomass

LNG

ICT

Techno-parks Innovation Hub

2

EXISTING LAND PORTFOLIO

OVERALL

Phase 1A 62Ha

Phase 1F 110Ha

Phase 1D 65Ha

Total 172Ha

EXISTING LAND PORTFOLIO

PHASE 1A

EXISTING LAND PORTFOLIO

PHASE 1A

• Bulk Infrastructure

complete

• Medway Road bring

upgraded

• Signed agreements

with –

– SPS Piping – R300

million PVC - O

Piping Plant

– RB Energy – R20

million logistics

company

– ProStar Paints –

R16 million coatings

plant

• Umfolozi TVET

(Technohub)

5

EXISTING LAND PORTFOLIO

PHASE 1A: SPS MANUFACTURING

EXISTING LAND PORTFOLIO

OVERALL

Phase 1A 62Ha

Phase 1F 110Ha

Phase 1D 65Ha

Total 172Ha

EXISTING LAND PORTFOLIO

PHASE 1F

8

• Construction of

Bulk

Infrastructure

20165

• Agreements

signed for

• Titanium

dioxide plant

• Biomass/gas

power plants

• Calcium

carbonate

plant

• Tata Steel

Chromium

smelter

(liquidation,

rescue being

attempted)

INVESTOR PIPELINE

9

Investor Name Project Investment

Value

(R'million)

Size of

site (ha)

IDZ

Phas

e

Jobs

(C)

Jobs

(P)

Country of Origin

Alugas South Africa Manufacturing of Aluminium Gas Canisters. 300 5.5800 1A 100 126 South Africa/ Germany

Byromate (UMuthi

Power)

Generation of green electricity 2 000 12.2161 1F 260 70 South Africa

Elegant Afro Line (Pty)

Ltd

Establishment of Caustic Soda/Chlorine

chemical production plant

900 8.9218 1F 350 150 South Africa and Tata

from India and Italy.

EMv Nanomaterials

(Pty) Ltd.

Manufacturing of Nano Precipitated Calcium

Carbonate.

250 3.0930 1A 250 58 South Africa

ESK Paper Industries

(Pty) Ltd

Manufacturing of kraft paper 1 200 11.0085 1F 600 239 South Africa

/Switzerland

Faratec MGRP Piping

Systems

Manufacturing of MGRP Pipes for water, gas, oil

distribution

400 3.2800 1A 100 200 Iran / South Africa

JDW Engineering Sulphur micronizing 35 1.0550 1A 100 60 South Africa

Nyanza Light Metals Titanium Dioxide Pigment 4 500 63.7686 1F 800 300 South Africa

Pro Star Export Paints Paint manufacturing company 75 2.1250 1A 50 50 South Africa

RB Energy Services (Pty)

Ltd

Heavy logistics 20 2.1250 1A 48 20 South Africa

SPS Manufacturing

(Pty) Ltd

Manufacturing of plastic piping for bulk water

distribution

300 3.1870 1A 498 59 Spain and South Africa

Techno park 5.8710 1A

uGesi Wire and Cable

Manufacturing (Pty) Ltd

Manufacturing of low to medium voltage cables 150 2.5370 1A 50 100 South Africa

Wilmar Processing SA

(Pty) Ltd

Palm oil refinery 1 200 13.6660 1A 250 20 Singapore

RENTALS

• For land R6.49/ 𝑚2

• Management fee R0.60/ 𝑚2

Escalating at CPI

• Top structure – market related

10

SEZ TAX INCENTIVES

11

CLUSTER INCENTIVE SCHEME

SEZ SPECIFIC • 15 % Corporate income tax - Income Tax Act (after Notice by Minister of

Finance)

• Building Allowance – 10 years

• Job Incentive (Applies only to youth outside SEZ)

• VAT Timing benefit (in Custom Control Area (CCA) only)

• RBIDZ Base Rate R 6,49/m2/month ((excl VAT if applicable) and a

Management fee of R0,60 per m2/month for vacant developed land).

INFRASTRUCTURE INVESTMENT • Critical Infrastructure Programme (CIP)

• IDZs (SEZ)

FUTURE EXPANSION PLANS PHASE 1D

12

FUTURE OPPORTUNITIES

PROPOSED AND EXISTING GAS LINES

13

OPERATION PHAKISA

OIL AND GAS

• Many consortia want to put gas-

to-power plants in Richards Bay

ranging from R4 bn/500MW to

>R30 bn/3000MW using

existing infrastructure intended

to feed into smelters

• “Lilly line” can feed 23 mgjpa to

Secunda and 23 m GJpa to

Avon/ Durban

14

FUTURE EXPANSION PLANS BAYSIDE SITE: METALS HUB

15

BAYSIDE SITE: METALS HUB

• Bayside Aluminium

16

PROPOSED EXPANSION: PHASE 2

17

Heavy

Industry Light

Industry

• 1200 ha – 3000 ha

THANK YOU