Manufacturing
The North West’s already strong manufacturing sector is set to grow as beneficiation of primary production grows.
The North West’s manufacturing sector is based in the eastern part of the province, around Rustenburg and Brits. More than 50% of provincial production comes from this area. One of the main reasons for this is the proximity to suppliers, transport and lucrative markets in neighbouring Gauteng province.
Exports make up a high proportion of total production, therefore it is important to achieve the low costs and quick turnaround time offered by international departure points such as OR Tambo International Airport in Gauteng. Other manufacturing centres in the province include Potchefstroom, Klerksdorp and Mafikeng.
The main contributing subsectors in the industry are automotive, food and beverages, metal products, machinery and household appliances, furniture, non-metallic products, and fuel and petroleum products. The fastest-growing subsectors are finance, trade, transport and construction.
The growth in diversity of this sector is something that is being actively encouraged by several agencies of the provincial government, as the province seeks to rid itself of over-dependence on commodities. With South African manufacturing registering a 10% output increase in the fourth quarter of 2009 (Stats SA), the outlook is good for expansion.
Production of non-metallic mineral products is concentrated around Lichtenburg and Mafikeng (cement), and Rustenburg (stone). Metal products and machinery are concentrated in the towns of Brits, Rustenburg and Potchefstroom. Klerksdorp, because of its location in the middle of a mining region, has a concentration of steel manufacturers, cable suppliers and engineering works. Potchefstroom has several large food processors and fertiliser companies and its industrial park has a good mix of medium and light industry. The town has the largest chalk and crayon factory in South Africa. Brits is
known for its automotive supply plants but it also has factories that produce optical fibres and fruit juices.
Automotive
The focus of North West Province’s automotive industry is in producing components. These are mostly supplied to firms in Gauteng. Brits is at
the centre of this subsector of the manufacturing sector. The huge Bridgestone factory in Brits, established back in 1971, has recently undergone a R700-million upgrade. As a consequence, new staff have
been employed and the plant has become one of only four in the world that is producing ‘runflat’ tyres, a new technology designed to keep vehicles safe and on the road despite punctures.
The sophisticated Bosch plant in Brits makes starters, alternators, braking systems and electronic-control units. Electrical wiring looms and automotive safety glass are among the other products that are made in the North West and supplied to automotive manufacturers.
The Department of Economic Development and Tourism, Invest North West and the Automotive Industry Development Centre (AIDC) have a memorandum of understanding to focus on five key areas: a competitiveness improvement cluster, through the Tirisano Project; supply chain assessments; and the North West automotive strategic forum. Creating employment is vital in the province, but just as important is creating a workforce that has the appropriate skills to do the work. These programmes focus on skills development, especially in the training of artisans, apprentices, toolmakers, electricians, engineers and programmers.
Invest North West has identified several opportunities for new investors in the sector: local procurement by international assemblers; the establishment of engineering, design and testing facilities; and leather processing and production specifically for car interiors.
Potential
The Dr Kenneth Kaunda District Municipality is looking to expand its food-processing industry, especially as the area produces so many agricultural products that lend themselves to processing. The North West University is also in possession of several patents that it wants to commercialise and is looking for partners. Other areas the district municipality is exploring include aviation, chemicals and plastics and pharmaceutical.
The Mafikeng Industrial Development Zone (MIDZ) is the focus of several initiatives to grow and diversify the manufacturing sector in the North West. One of the goals is to promote the MIDZ as a hub for the manufacture of electronic components, wireless tracking and tracing equipment. Further downstream opportunities will present themselves in the information and communications technology (ICT) sector: computer chips, DVDs, telecommunications hardware and software, electronic maps and data interchange.
Another aim of the MIDZ is to see to it that more of the province’s minerals have value added to them before they are sold out of the province. The mineral beneficiation programme is focusing on:
- Cutting and polishing of precious and semi-precious stones
- Manufacturing platinum and gold jewellery
- Cutting and polishing of granite and marble
- Retailing of precious and semi-precious stones
