Durban — President Cyril Ramaphosa has lauded timber company Sappi for a R7.7 billion investment in KwaZulu-Natal.
The president was speaking at the official opening of the expanded portion of the Sappi Saiccor plant in Umkomaas, on the KZN South Coast, on Tuesday.
The expansion is the culmination of a pledge made by the company at the 2018 presidential investment summit.
Ramaphosa applauded the company for fulfilling its commitment, saying it proved wrong, the many people who dismissively said the R1.2 trillion investment target the government set to achieve in five years was a pipe dream.
He said R1.1 trillion had been attracted within four years, with only R1 billion investment remaining to reach the target.
Ramaphosa added that the expansion of the Sappi plant meant that the Durban port container terminal should also be expanded in order to cope with the expected increase in exports.
“Today we are witnessing infrastructure and development in the province. I had never thought that out of a tree you get tablets for your health and clothing. Who ever knew that out of a tree we will get jeans and even lipsticks for women also come from trees. This investment is proof that our economy is on the recovery road and it is a result of private-public partnership with government and private sector,” said the president.
In his welcoming remarks, Sappi Limited chairperson Sir Nigel Rudd said the expansion of the plant built in 1950 was the biggest ever undertaken by any company in the country.
He said Sappi now had 19 mills in Africa, Europe and North America.
According to Ruud, the company has 1 200 permanent workers who are supported by 700 temporary staff, mainly local people. During the expansion project, the company created 3 000 job opportunities, with 2 500 sourced from local areas.
Chief executive officer Steve Binnie said Sappi injects R60 billion per annum directly and indirectly into the country's gross domestic product, with 50 000 people depending on the company for their livelihoods in KwaZulu-Natal province.
At the plant, the company produces viscose which is used to manufacture textiles. It mainly exports to countries like Indonesia.
Apart from creating jobs, the expanded plant has reduced CO2 fossil fuel emissions by half, significantly reduced plant CO2 emissions, reduced water consumption and cut waste to landfill from coal ash by 48%. The plant was one of the biggest dissolving pulp.
The president was accompanied by Trade, Industry and Competition Minister Ebrahim Patel, KwaZulu-Natal premier Nomusa Dube-Ncube, member of the executive council for economic development, tourism and environmental affairs Siboniso Duma as well as business and government officials.
Earlier in the day, the president officially opened another plant worth R1.4 billion in KwaDukuza on the north coast.
The 35 000m2 state -of the-art plant is an automotive facility which was one of the five capital investment projects committed by Metair to support the localisation of the new Ford Ranger vehicles.
The plant will produce wiring harnesses for the latest Ford Ranger and Isuzu models which will be sold locally and abroad. It has created over 4 000 jobs and more than 70% of the staff are female.
Daily News