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IDC Invests R500 Million In Downstream Plastic Sector

The Industrial Development Corporation (IDC) has approved a R500 million funding scheme to support start-up companies, expansions and empowerment acquisitions in the downstream plastic sector over a period of five years, starting in 2019.

Sonia Keulder from IDC’s Chemical Products and Pharmaceuticals strategic business unit.

The scheme will provide debt and equity-type finance at reduced return requirements, to support the sector’s re-industrialization and adjustment. Specific focus is given towards environmental sustainability, diversification to higher value products and industry modernization. Investments will be capped at a maximum of R35 million per transaction, for successful applicants. It will specifically support one of IDC’s developmental outcomes, which is facilitating sustainable direct and indirect jobs; promoting of entrepreneurial development and growing the SME sector and increasing localization of production.

The South African Downstream Plastic sector consists of an estimated 1,800 small and medium enterprises (SMEs) employing around 43,000 people. It adds value to locally produced surplus polymers, and its unique impact lies in its contribution and linkage to almost every value chain in the economy. “The development of plastic products is perceived as an important enabler in the development of diverse manufacturing capabilities in various sectors” said Sonia Keulder from IDC’s Chemical Products and Pharmaceuticals strategic business unit. “The scheme aims to support the growth and sustainability of companies that have improved their competitiveness and diversified their product range and increased usage of their recycled material” Keulder said.

Positive Growth In Manufacturing Production Encouraging But Volatile

The sustained positive trajectory in production of the broader manufacturing sector is encouraging but still volatile, says Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Economist Marique Kruger.

SEIFSA Economist Marique Kruger.

Speaking after the release of manufacturing production figures by Statistics South Africa (Stats SA), Kruger said “although the year-on-year output had consecutively decreased in the three months leading to December 2018, production was still positively trending”. The encouraging performance has continued into the new-year as companies stay buoyant despite a generally softening domestic business confidence and business expectation. However, the volatility in the data is more pronounced when analyzed on a month-to-month basis.

The latest preliminary seasonally-adjusted data published captures a year-on-year increase in production in the broader manufacturing sector in January 2019 when compared with December 2018. Manufacturing production increased by 0,3% in January 2019 compared with January 2018. On a month-to-month basis, output in the broader manufacturing sector decreased by 2,0% percent in January 2019, compared with December 2018.

“Despite the encouraging long-term performance in the wider manufacturing sector, a major concern still remains, as the largest negative contributions in the three months ended January 2019 were made by the broader metals and machinery cluster of industries. In addition, the apprehension is that of a broad-based weakening in activity in industrial production – including the mining, electricity, gas and construction sectors impacting negatively on manufacturing, given the high level of interdependence,” Kruger said.

She added that moreover, the manufacturing sector continues to face headwinds underpinned by increased volatility, low domestic demand, high petrol prices which compounds logistics costs of companies and increasing energy cost. She said encouragingly, the expansion in annual output in January 2019 provided a basis for companies to increase their capacity towards higher production and profits, driven by a firming domestic and regional demand.

“SEIFSA is confident that companies in the broader metals and engineering cluster will continue to stay resilient despite the continuous headwinds and less than required improvement in domestic demand. This is important towards ultimately growing the domestic economy and sustaining current job levels,” Kruger concluded.

South African Built Ford Ranger Tops LCV Exports

International demand for Ford’s trendsetting Ranger pickup reached an all-time high in 2018, with Ford’s Silverton Assembly Plant in Pretoria having shipped a total of 68 364 units to export markets – a substantial 16.2% increase compared to 2017.

Combined Ranger production for the domestic and export markets for 2018 ended on 98 505 units, 8 383 more than the previous year. This is the highest annual production volume to date for Ford’s South African operations, with December 2018 reaching a new monthly record of 11 091 combined Ranger sales.

“It was an extremely busy and successful year for our export business in 2018, as we attained our highest-ever production volume for the Ford Ranger and boosted our export volumes by 16.2% to retain our undisputed leadership of the light commercial vehicle (LCV) export segment,” says Neale Hill, Managing Director, Ford Motor Company Sub-Saharan Africa Region.

“This was achieved despite the extensive changes and upgrades implemented at the Silverton Assembly Plant over the past 18 months,” he adds. “We invested over R3-billion in preparation for even higher production capacities for 2019 and beyond, as well as for the imminent launch of the first-ever Ford Ranger Raptor, along with the new Ranger and Everest models due later this year.”

The Ranger is becoming increasingly popular amongst European buyers, both for commercial and leisure vehicle applications, thanks to its wide breadth of capabilities, its proven performance, outstanding quality, leading-edge technologies and exceptional safety.

The bulk of Ranger exports were destined for European markets, with Ford of Europe notching up a final tally of 51 500 sales in its 20 traditional ‘EU20’ markets. This gave the Ranger unrivalled leadership of the pickup segment, claiming 27.7% market share – up 1.4 percentage points year-on-year.

COEGA Wins Investor Of The Year Award

“We are delighted to have won such a prestigious award. It’s a validation of the hard work we put in consistently to attract and retain investors at the Coega Special Economic Zone (SEZ),” says Dr. Ayanda Vilakazi, CDC unit head brand, marketing and communications.

The category won by the CDC seeks to encourage the expansion of investment into the South African economy. It recognizes efforts and commitments by local and global companies to create jobs and stimulate the economy through investment across all industry.

Since inception in 1999, the CDC as a SoC involved in the development of the Coega SEZ and as one of the leading infrastructure development and facilities management agency in the country (IA) has created 112,974 jobs (direct and indirect). In the 2017/18FY including year to date as at February 2019, the CDC created a total of 19,402 jobs. This is accompanied by 8210 during peak season operational jobs created as a result of the 43 operational companies located at the Coega SEZ. Mindful of the importance of skills and training, the CDC has further trained in excess of 92,583 people since inception.

The clarion call made by President Cyril Ramaphosa to raise $100 billion (R1,4 trillion) over the next five years keeps us wide awake. In an effort to encourage growth in Foreign Direct Investment (FDI) for the Sub Saharan region, the Coega SEZ has dedicated much of its long-term strategy to focus on investment opportunities, which seek to secure a firm position for Africa globally. As a result, Coega SEZ is recognized as the leading SEZ in Africa and a gateway to world markets.

“The SEZ’s strategic location and adjacency to the deep water Port of Ngqura has seen it become a springboard to investors looking to explore the greater African market. “Our location is unique; it provides an opportunity for potential investors to penetrate the African market,” adds Vilakazi.

The Coega SEZ serves as a one-stop metropolis for all things export-related, it currently boost 43 operational investors (local and international). Over eighty percent (80%) of these companies have seen an increase in their productivity and profits since starting operations in the zone, with the benefits being felt throughout the Eastern Cape and in areas where the CDC is operating.

“This has led to the Coega SEZ becoming home to various leading Fortune 500 companies seeking access to a wider market. At the Coega SEZ there are currently 43 operational investors with an investment portfolio in excess of R7-billion including investors playing both in the African and wider global market. By year end 2019/20, the CDC is projecting an increase in the number of operational investors in the Coega SEZ to 50 worth R8,24 billion in Foreign Direct Investment (FDI),” adds Vilakazi.

Local Manufacturing Key To Economic Growth

Hawk

Eric Bruggeman, CEO at the South African Capital Equipment Export Council (SACEEC), says that in the majority of cases there is simply no reason for the African market to source products outside the continent.

“The innovation and quality of locally produced goods is exemplary and we believe that this message needs to be conveyed to those people responsible for the procurement of goods within organizations. By partnering with Specialised Exhibitions Montgomery, we are providing a showcase for local manufacturers at an inaugural event.”

AC Valves

The Local Southern African Manufacturing Expo (LME), which is endorsed by the Premier of Gauteng, David Makhura, will be held at the Expo Centre, Nasrec from 21 to 23 May 2019. The event, which will also include free-to-attend seminars hosted by SAIMechE, has attracted a wealth of local manufacturing intellectual property and expertise.

The expo will also play host to an AREI (Association of Representatives for the Electronics Industry) Pavilion and the Skills Development Zone hosted by the Artisan Training Institute (ATI). AREI represents the interests of the electronics industry in South Africa and aims to contribute to the creation of an environment which encourages a dynamic growth of the electronic manufacturing

Fabchem

industry, at both component and system level, in South Africa.

The Artisan Training Institute (ATI) will use the Skills Development Zone ATI to display their technical skills in an interactive workshop setting. ATI is making a substantial difference in the technical training environment as it drives quality training throughout its operations.

Nxco Mining Technologies

The organizers have signed an agreement with the Mandela Mining Precinct wherein the Southern African Institute of Mining and Metallurgy (SAIMM) will host the SA Mining Supply Chain Conference and Workshop alongside the Local Southern African Manufacturing Expo on 22 and 23 May.

“We are very excited about the potential of the Expo to ignite business ties between our local manufacturing sector and industry captains from Africa and abroad. It’s time for local manufacturers to share their offerings with the market. This event will present the exhibitors with a captive target audience and allow industry procurement specialists to source high-quality locally-manufactured products,” says Charlene Hefer, portfolio director for Specialised Exhibitions Montgomery.

To visit the Local Southern African Manufacturing Expo 2019 or to find out more information about the exhibition visit the website at www.localmanufacturingexpo.co.za

Volvo Cars To Impose 180 KPH Speed Limit On All Cars

The company’s Vision 2020, which aims for no one to be killed or seriously injured in a new Volvo by 2020, is one of the most ambitious safety visions in the automotive industry.

But realizing that technology alone will not get it all the way to zero, Volvo Cars is now broadening its scope to include a focus on driver behaviour.

Research by Volvo Cars has identified three remaining concerns for safety that constitute so called gaps in its ambition to completely end serious injuries and fatalities in its cars, with speeding a very prominent one.

“Volvo is a leader in safety: we always have been and we always will be,” said Håkan Samuelsson, president and chief executive. “Because of our research we know where the problem areas are when it comes to ending serious injuries and fatalities in our cars. And while a speed limitation is not a cure-all, it’s worth doing if we can even save one life.”

Apart from limiting top speeds, the company is also investigating how a combination of smart speed control and geofencing technology could automatically limit speeds around schools and hospitals in future.

“We want to start a conversation about whether car makers have the right or maybe even an obligation to install technology in cars that changes their driver’s behaviour, to tackle things like speeding, intoxication or distraction,” said Samuelsson. “We don’t have a firm answer to this question, but believe we should take leadership in the discussion and be a pioneer.”

The problem with speeding is that above certain speeds, in-car safety technology and smart infrastructure design are no longer enough to avoid severe injuries and fatalities in the event of an accident. That is why speed limits are in place in most western countries, yet speeding remains ubiquitous and one of the most common reasons for fatalities in traffic.

BMW Group Wins Major Engine-Delivery Contract From INEOS Automotive

The BMW Group has secured a major order from INEOS Automotive Ltd. for the delivery of petrol and diesel engines.

The contract is a further important step in the BMW Group’s strategy to expand its business providing drivetrains to industrial customers.

The powerful and efficient BMW TwinPower Turbo engines are destined for INEOS Automotive Ltd.’s new off-road vehicle project under a contract that foresees the delivery of a high-range five-digit number of engines. With this agreement, the BMW Group opens up additional sales channels and taps new growth potential.

“Our company is famous for efficient high-performance engines that are among the best in the world”, said Pieter Nota, Member of the BMW AG Board of Management responsible for Sales and Brand BMW and Aftersales BMW Group. “We offer a broad range of premium, tailor-made drivetrain technologies and services for carmakers and other customers and believe this is a business area with real growth potential.”

BMW Group engines with the latest fuel-saving technology have been crowned International Engine of the Year in their class many times in recent years.

The BMW Group operates a global sales and licensing business for its combustion engines, electric batteries and vehicle platforms as part of its dealings with clients inside and outside the car industry.

Space X Crew Dragon Splashdown Marks Success Of First NASA Commercial Crew Flight Test

NASA passed a major milestone recently in its goal to restore America’s human spaceflight capability when SpaceX’s Crew Dragon returned to Earth after a five-day mission docked to the International Space Station.

About 6 hours after departing the space station, Crew Dragon splashed down at 8:45 a.m. EST approximately 230 miles off the coast of Cape Canaveral, Florida. SpaceX retrieved the spacecraft from the Atlantic Ocean and is transporting it back to port on the company’s recovery ship.

Demonstration Mission-1 (Demo-1) was an uncrewed flight test designed to demonstrate a new commercial capability developed under NASA’s Commercial Crew Program. The mission began March 2, when the Crew Dragon launched from NASA’s Kennedy Space Center in Florida and racked up a number of firsts in less than a week.

  • First commercially-built and operated American crew spacecraft and rocket to launch from American soil on a mission to the space station.
  • First commercially-built and operated American crew spacecraft to dock with the space station.
  • First autonomous docking of a U.S. spacecraft to the International Space Station.
  • First use of a new, global design standard for the adapters that connect the space station and Crew Dragon, and also will be used for the Orion spacecraft for NASA’s future mission to the Moon.

NASA and SpaceX teams gathered in the early morning hours at the company’s headquarters in Hawthorne, California, to follow the spacecraft’s return journey and ocean splashdown.

“We were all very excited to see re-entry, parachute and drogue deploy, main deploy, splashdown – everything happened just perfectly. It was right on time, the way that we expected it to be. It was beautiful,” said Benji Reed, director of crew mission management at SpaceX.

A critical step in validating the performance of SpaceX’s systems, Demo-1 brings the nation a significant step closer to the return of human launches to the space station from U.S soil for the first time since 2011, when NASA flew its last space shuttle mission. However, NASA and SpaceX still have work to do to validate the spacecraft’s performance and prepare it to fly astronauts.

“If you just think about the enormity of this flight and all of the prep that went into it – getting the pad refurbished, getting the flight control room set up, getting the vehicle built, getting the Falcon 9 ready, all of the analysis and mission support that went into it – it’s just been a tremendous job. Our NASA and SpaceX teams worked seamlessly not only in the lead-up to the flight but in how we managed the flight,” said Steve Stich, deputy manager of NASA’s Commercial Crew Program.

Crew Dragon carried a passenger on this flight test – a lifelike test device named Ripley, which was outfitted with sensors to provide data about potential effects on humans traveling in the spacecraft. After SpaceX processes data from this mission, teams will begin refurbishing Crew Dragon for its next mission, an in-flight abort test targeted to take place this summer. Demo- 2, the first crewed test flight, will carry NASA astronauts Bob Behnken and Doug Hurley on the spacecraft’s final flight to certify Crew Dragon for routine operational missions.

EU And Airbus Achieve Major Win Against US

Airbus welcomes the report of the WTO Appellate Body, published recently, which confirms that the United States failed to withdraw the subsidies granted by federal, state and local authorities to Boeing and to remove the harm those subsidies caused to Airbus.

The Appellate Body has rejected every single United States argument whereas it has taken all EU legal points on board. In addition, the WTO highest court has also qualified a number of additional US federal and state programmes as illegal subsidies and even, as prohibited subsidies as in the case of the Foreign Sales Corporation scheme (FSC), a major win for the EU.

The report requests that further compliance steps are necessary from the United States and Boeing. Failure to do so will provide the European Union the possibility to seek countermeasures on imports of US products. Airbus General Counsel John Harrison stated, “this is a clear victory for the EU and Airbus. It vindicates our position that Boeing, while pointing fingers at Airbus, has not taken any action to comply with its WTO obligations, contrary to Airbus and the EU. With this damaging report, continuing to deny they receive massive illegal subsidies from the United States government is no longer an option. Stated differently, absent settlement, the US will pay – in perpetuity – billions in annual sanctions driven by every single flying Boeing programme, while the EU would face, in the worst case, only minor issues.

He added, “we hope that these findings will prompt the United States and Boeing to move forward constructively in this long-standing dispute and join us in working towards a fair-trade environment. In the absence of a constructive approach, the EU now has a very strong legal case to move forward to countermeasures.”

Airbus thanks the European Commission and the governments of France, Germany, the United Kingdom and Spain for their continuous support throughout the long dispute process. Their longstanding efforts to restore a fair level playing field are now clearly showing results.

Machine Tools Should Be A Major Focus Of The EU-US Trade Talks

CECIMO – the European Association for Machine Tool Industries and related Manufacturing Technologies – welcomes the European Commission’s efforts towards regulatory cooperation and the removal of non-tariff barriers in the planned trade deal between the EU and US on industrial goods.

Machine tools are a key enabling technology without which no manufacturing process would be possible. As machine tools are imported into both the EU and US with very low or null tariffs, non-tariff barriers remain the main obstacles in trade with the US. The lack of reciprocity in conformity assessments between EU and US (Federal and State level) certification bodies and standards entail important administrative and financial costs for companies – especially SMEs.

Other issues such as visas for service personnel and overly-protective product liability rules in the US should be tackled as well, without lowering product quality requirements. However, to ensure progress in the trade talks, the scope of the negotiations should be focused on industrial products and avoid sectors which the European Parliament had requested to include during its vote on 19 February.

“European policymakers need to ensure that the interests of European machine tool builders are prioritized and that European manufacturing technologies preserve their competitive position on the global market” says Dr Roland Feichtl, Member of the Supervisory Board of KRAUSECO Werkzeugmaschinen and President of CECIMO. Mr Marcus Burton, Non-Executive Director at Yamazaki Mazak and Chairman of CECIMO’s Economic Committee, explains that “focusing trade talks on industrial products and regulatory alignment for machine tools in particular will be key in resuscitating the trans-Atlantic trade relationship between the two biggest world economies and rebuilding business confidence in global trade”.

In July 2018, US President Donald Trump and the European Commission President Jean-Claude Juncker met to explore a possible trans-Atlantic trade relationship, amid a context of increased trade tensions originating from the US imposing tariffs on steel and aluminium and the threat of import tariffs for European cars. In September 2018, an Executive Working Group, co-chaired by EU Trade Commissioner Cecilia Malmström and US Trade Representative Robert Lighthizer, was formed to identify concrete actions for regulatory cooperation.

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