Is Samsung Electronics planning to pour billions of rand into a new manufacturing facility north of Durban?
The company’s Africa vice-president and chief operating officer, George Ferreira, let slip at Sentech’s Connected TV Summit in Sandton last week that the company intends opening a television manufacturing facility at the Dube TradePort near King Shaka International airport.
He said the facility would be operational within two months.
However, Samsung has since clammed up about its plans, saying it is not prepared to provide additional comment at this time. In an e-mailed statement, it says simply that it “places a heavy emphasis on future investment” and is “committed to creating a more sustainable future for the communities it operates in”.
But according to a recent news report in local newspaper The Mercury, several highly placed government sources have confirmed the proposed investment at the Dube TradePort. The paper estimates the investment to be worth in the region of R3bn to R4bn.
KwaZulu-Natal economic development MEC Michael Mabuyakhulu is tight-lipped on the deal, but The Mercury says trade & industry director-general Lionel October has said that Samsung is finalising plans for a new factory in the province.
“We are in advanced talks with Samsung to invest in a major factory at Dube TradePort,” October is quoted as saying. “They want to come in to take advantage of the tax and other manufacturing incentives that will be offered as part of Dube TradePort becoming one of South Africa’s new special economic zones.”
October went on to say that Samsung’s factory would focus at first on the manufacturing of “white goods” and other appliances.
“They are looking at producing a whole suite of goods for the local and Africa export market, but will start with a small product range,” The Mercury quotes quotes October as saying. “We want to encourage them to expand production to electronics and higher value technology products over time.” — © 2014 NewsCentral Media
