Presentation to Portfolio...
Transcript of Presentation to Portfolio...
Presentation to the Portfolio Committee
By Simphiwe KondloChief Executive Officer
06 June 2007
The East London IDZ
• Is part of the DTI’s Industrial Development Zone programme aimed at developing the country and the Eastern Cape’s export capability and global competitiveness.
• Has positioned itself as a purpose built investment destination for export oriented industries.
• Will be developed in a number of phases. To date infrastructure has been finalised for Zone 1, which is already being populated with investors.
• 11 investors worth R750 million have already been secured. Of these eleven investors, ten have already developed their plants within the zone –making the East London IDZ the first operational IDZ in South Africa.
• To date more than 3200 direct construction jobs have been created and the committed investor are creating and additional 1118 direct manufacturing jobs.
Milestones to date
Year Milestone
October 2001 Application to DTI for a designation of an IDZ for East London
2002 DTI designates an IDZ for East London
September 2002 Department of Trade and Industry awards Provisional IDZ Operator’s Licence
May 2003 Commencement of the East London IDZ construction phase through the awarding of the first bulk infrastructure contract.
June 2005 Announcement of first three investors valued at R188million
July 2005 Finalisation of bulk internal infrastructure phase
October 2005 Announcement of R112 million Foxtec-Ikhwezi investment. (fourth investor)
April 2006: Sod - turning of the Automotive Supplier Park.
December 2006 Announcement of 7 Automotive Supplier Park investors with a total investment value of R450 million
February 2007 Operationalisation of the East London IDZ Automotive Supplier Park
Investors at establishment or operational stage
CompanyCompany SectorSector ValueValue Job CreationJob Creation
1 50
30
120
120
260
40
35
23
80
10 T.I. Tanks Automotive R36 million 40 Operational
798
2
3
4
5
6
7
8
9
StatusStatus
Milltrans Logistics R11 million Operational
Seatek Aqua-Culture R21 million Operational
Foxtech Ikhwezi Automotive R112 million Operational
Feltex Trim Automotive R65 million Operational
Feltex Fehrer Automotive R75 million Operational
Eurofit Automotive R20 million Establishment phase
Carcoustics Automotive R10 million Will move in June
Johnson Control Ind. Automotive R75 million Operational
Total Investment R525 million
Feltex Futuris Automotive R100 million Establishment phase
Key successes of the East London IDZ
The East London IDZ has been able to successfully attract targeted strategicinvestors – as indicated in the objectives of the IDZ programme. Theseinvestments reflect the following:
• Strengthening manufacturing capability of local industryThe East London IDZ has, through the development of its Automotive Supplier Park, successfully strengthened the manufacturing capability of the Automotive industry in the Eastern Cape.
• Introduction of new technology to South AfricaThree of the East London IDZ’s confirmed tenants (Foxtec-Ikhwezi, Feltex Fehrer, Feltex Futuris) have introduced new technology in South Africa originated from Germany and Australia. This has also assisted in introducing new skills in the Eastern Cape’s work force.
Key successes of the East London IDZ (cont)
.• Attracting export-oriented industries
Of the 11 confirmed investors in the zone, four are either currently or will in future be exporting their products to countries such as Germany (automotive) and the East (aqua culture)
• Beneficiation of local materials• Foxtec-Ikhwezi is sourcing its raw material (aluminium) from Kwa Zulu Natal
• Attraction of Foreign Direct InvestmentSeven of the 11 investors that have been confirmed by the ELIDZ are as a result of foreign direct investment into the country.Of these FDI companies, three have partnered up with local companies to form joint ventures.
East London IDZ key investment sectors
The East London IDZ has ideally positioned itself to attract strategic export-orientedindustries in the automotive, agro-processing, ICT and electronics sectors.
1. Automotive• This is the first cluster within the East London IDZ to be operational.• The cluster includes the development of the Automotive Supplier Park which houses
first-tier suppliers to Daimler Chrysler South Africa (DCSA).
2. Agro industries• This sector has the potential of being one of the biggest clusters within the East
London IDZ, with sub clusters such as bio-fuels, aqua culture and timber.
• The East London IDZ is already in advanced stages with the planning and sourcing of investors for the bio-fuels and aqua culture sub clusters. An abalone exporter is already operating from the zone’s aqua culture cluster.
East London IDZ key investment sectors
3. ICT and electronics manufacturing
• This sector focuses on both ICT related services (Business Process Outsourcing) and the manufacturing of ICT (electronics) equipment.
• The East London IDZ’s value proposition in regard to this sector responds to three elements namely:
Availability of skilled labour for BPO and call centresExport of electronics equipmentAccess to African markets for electronics equipment manufacturers.
East London IDZ
changing the EC economy – changing lives
Thank you
+2743 702 8200 (phone)
+2743 702 8251 (fax)
simphiwe@elidz co za
East London IDZ future projections
Year R-billion R-billionPr 0.296 0.010
2006/07 0.145 0.3042007/08 0.082 0.1602008/09 0.096 0.1012009/10 0.000 0.1102010/11 0.000 0.009
0.618 0.694
ELIDZ ZoneInfrastruct.
IDZ Super-structures
Total projected Capital Investment by IDZ Operator
Required total investment by East London IDZ by 2010/2011: R1.31 billion
Total projected capital investment by IDZ tenants
R -b illio n R -b illio n
0 .0 0 0 0 .0 0 00 .0 2 3 1 .0 7 40 .1 8 0 1 .0 1 80 .3 3 8 1 .2 3 00 .3 9 0 1 .3 0 70 .4 1 2 1 .3 9 21 .3 4 4 6 .0 2 0
T e n a n tC o n s tru c tio n
T e n a n t P la n t& E q u ip C a p e x
Projected total investment by IDZ tenants by 2010/2011: R7.36 billion
•The East London IDZ has finalised the infrastructure development of its Phase 1 and is currently populating this 236 ha area.
•Investment and economic impact projections for phase 1 are as follows:
East London IDZ Socio Economic Impact
IDZ Contribution toRegional & National Economies
Year Percent Percent R-billion07 1.43% 0.12% 1.1608 2.53% 0.21% 2.1109 4.08% 0.33% 3.5210 5.54% 0.45% 4.9311 6.53% 0.54% 6.00
ProvincialOutput %
NationalGDP % Total
1
1
2
ProjectedMunicipal Revenues
From FromEmployees industry
Year R-million R-million07 0.00 0.0008 7.65 17.7209 15.35 34.1010 25.37 53.2311 32.44 72.19 104.63
Employment Creation
Year Jobs Jobs Jobs Jobs07 5486 0 0 008 4745 2001 558 136709 5864 3895 1087 266010 5308 6241 1741 426211 4348 7979 2226 5449 2000212 4441 9625 2685 6574
Constructionrelated
IDZ Industries(direct)
Industry(indirect)
Industry(induced)
.
East London IDZchanging the EC economy – changing lives
Thank you+2743 702 8200 (phone)
+2743 702 8251 (fax)[email protected]
www.elidz.co.za