Mar 24, 2017 Last Updated 10:30 AM, Mar 24, 2017

Nigerian can producer to build SA plant

softdrinks2ABN – Nigerian can producer GZ Industries Ltd plans to build a 1 billion rand (US$71 million) factory in South Africa in partnership with local company Golden Era Group.

The factory will be built in Johannesburg and have an annual capacity of 1.2 billion cans.

It will start operations in the second quarter of 2016 and supply other countries in southern Africa.

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Volkswagen to invest $340m in SA

ABN – German car manufacturer Volkswagen AG plans to invest more than 4.5 billion rand ($340 million) in new products and infrastructure for its South African business.

About 3 billion rand will go towards production facilities at Uitenhage, near Port Elizabeth in the Eastern Cape, and 1.5 billion will go towards improving the supply chain by 2017.

Thomas Schaefer, managing director of Volkswagen Group South Africa, said in a statement: “Exports will again play a key role in our strategy going forward.”

The National Association of Automobile Manufacturers of South Africa said this month that car manufacturers including Volkswagen are expected to export more than 18% more vehicles this year in order to take advantage of the weaker rand.

The association predicted that domestic sales would decrease by 2.8% as consumers came under pressure from rising fuel costs and interest rates.

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Nigeria looks at reviving textiles industry

ABN – A committee set up by the Nigerian government to decide how to revive the country’s textiles industry has recommended that it invest N37.2 billion in the industry between 2016 and 2019.

The ‘Committee on Resuscitation of Cotton, Textile and Garments (CTG) Industry in Nigeria’ said the revival would also require using the N100 billion CTG fund domicile with the Bank of Industry.

It during its research that the number of textile manufacturers in Nigeria had fallen from 182 in the 1980s to just 34 today, and recommended that the federal and state governments also put effort into promoting local fabrics.

“This would enable the country to have sense of belonging like what is being done in the rice sector and make the textile sector boom,” said committee chairman Damilola Eniayeju.

He added that the proposed investment would serve as working capital for operational textile mills and help reopen about 80 mills that have been closed, as well as 23 ginneries.

The committee identified challenges to the CTG industry including smuggling and dumping of foreign textiles from Asian countries, electricity shortages and insufficient access to water.

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