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The first sod was turned on Tuesday for construction of a R300m Air Separation Unit by Afrox in the Coega Industrial Development Zone.
Afrox managing director, Brett Kimber, said the new facility will service their customers in the Eastern Cape, with whom they've had a long-standing relationship over the past 20 years.
He said the Air Separation Unit will also serve as a catalyst for growth of these businesses, adding that demand for Afrox products is already high in the Eastern Cape and is expected to increase in the future.
Kimber said when the Coega IDZ came on to the map, Afrox looked at it favourably as a potential investment destination given that the company continued to be a strong supplier in the Eastern Cape.
"The new R300m ASU will service that demand, while the investment reflects our greater corporate strategy to meet the needs of customers wherever they operate. When the ASU comes on stream, liquid oxygen, liquid nitrogen and liquid argon will be available from a source much closer to customer operations," he said,
"This will effectively eliminate the risks associated with distributing product over large distances and other external influences, whilst providing excess capacity and ample storage. From now on, Afrox customers can confidently grow their businesses without having to lay out capital for additional storage space or buffer stock."
Afrox Regional Manager for Eastern Cape, Rene Naidu, says "we believe that by making such a substantial investment in the Coega IDZ, Afrox will pave the way for new investors to feel confident enough to participate in the region's growth and development."
The CEO of the Nelson Mandela Bay Business Chamber, Kevin Hustler, said this is a "fantastic milestone for Afrox in our region and wonderful to see a R300m investment in this ASU plant at the Coega IDZ. This means that utility supply to customer base, not only in Nelson Mandela Bay, but the Eastern Cape is growing and Afrox is preparing itself for growth in the Eastern Cape for the next 20 years."
Caption: Christopher Mashigo, CDC Business Development Executive Manager, Rene Naidu, Afrox Regional Manager for EC, Brett Kimber, Afrox MD at sod turning on Tuesday.
