Ricochet News

Two projects worth R1 billion under construction in the Coega IDZ

Jul 6, 2017
Two projects worth R1 billion under construction in the Coega IDZ

Much needed jobs created as a result of construction taking place in Zone 3 & 5 of the Coega IDZ

The Coega Development Corporation (CDC) announced on Thursday 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.

Image: AFRICA’S PREMIER INVESTMENT DESTINATION:construction work is continuing in earnest at two Coega IDZ sites. Picture on the left – is construction at the R350 million Gas Cylinder Plant MM Engineering site. Picture on the right is construction at the R78 million ready mix concrete Plant Kenako Concrete site.