One of the five strategic investment projects Minister of Finance Trevor Manuel mentioned in his mini-budget to emphasise South Africa’s investment friendliness had already fallen by the wayside when he rose in Parliament on Tuesday.
The projects, worth R2-billion, are to generate an estimated R425,9-million over their life- spans and create about 10 573 direct and indirect jobs. They fall under the Department of Trade and Industry-administered strategic investment programme, which offers substantial capital allowances of between 50% and 100% for manufacturing assets.
However, Polyoak, which wanted to produce plastic hangers for the United States market, was ousted from the programme for failing to comply with its requirements.
Although the company had indicated in its application that its machinery was under construction, it failed ”to comply with the mandatory requirement on industrial assets” and was thus denied approval, according to a Government Gazette notice of October 11.
However, the four other projects met the requirements. These include:
Tata Iron and Steel Company, which will invest R13,75-million in manufacturing assets by October 2003 and assets totalling just over R482-million by October 2004 to produce high-carbon ferrochrome.
FibreCore Africa will invest a total of R184,38-million in an optical fibre plant and related infrastructure by October 2003.
Pegasus is to invest R187,5-milllion by July 2004 in plant and machinery to manu- facture ultra-thin ceramic floor tiles. The total investment amounts to R208,02-million.
Umkomaas Lignin will begin production of biostimulants from effluent from April 2003 after an investment of R303,68-million in plant and machinery.