The Coega Development Corporation (CDC) announced today that work has commenced on two of the projects worth over R1 billion at the Coega IDZ.
The CDC earlier this year announced that investment projects worth over R1 billion are ready for implementation in the Coega IDZ. The three projects which include a R650 million manufacturing cement grinding Plant, a R71 million ready mix concrete Plant, and a R350 million Gas Cylinder Plant.
“Progress on site is satisfactory, though early days, everything is continuing as planned and we envision we should meet our targets quite comfortably, “says Bruno Ponzo, CDC Senior Project Manager.
The two projects currently under construction include, MM Engineering a R350 million Gas Cylinder Plant in zone 3 of the Coega IDZ. The plant once in full operation will create over 70 sustainable jobs with a focus on young graduates. Production will include over 1.5 million gas cylinders. The second project under construction in zone 5 of the Coega IDZ is Kenako Concrete a R78 million ready mix concrete manufacturer. The plant once in full operation will create over 59 sustainable jobs.
“We are highly pleased with the inflow of investments in the metals and manufacturing industrial sector of the Coega IDZ. We look forward to the start of construction on the third investor, a R650 million cement grinding Plant,” says Sadick Davids, CDC Business Development Manager - Metal and Manufacturing.
SMME participation
As is the policy of the CDC in ensuring gainful participation of emerging contractors through 36% of the contract value going to Small Micro Medium Enterprises (SMME). “The organisation has recently finalised packages worth over R22million for SMME’s to participate in the construction of MM Engineering exceeding its target by 3% with 39.16% awarded to SMME’s. Kenako Concrete is a 100% black owned SMME company and one of the first black industrialists in the Eastern Cape,” says Unathi Maholwana, CDC SMME Programme Manager.
Jobs Created
Being a catalyst for the championing of socio economic development in the Eastern Cape, the CDC ensures that the local environment benefits directly from investments through job creation. As a result of the construction taking place at both sites, over 90 people from the Nelson Mandela Bay’s most impoverished communities are benefiting directly.
“Simply translated, over 90 families in the process of construction of these plants directly benefit through withdrawing salaries on a monthly basis. To us, that is what matters the most,” concludes Dr Ayanda Vilakazi, CDC unit head marketing and communications.
Statement supplied by Coega IDZ
