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SA’s manufacturing ambitions boosted by new R150m cable facility

African cables (CBI) facility

17th April 2014

By: Creamer Media Reporter

  

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From Creamer Media in Johannesburg, this is the Real Economy Report. Government’s efforts to advance South Africa’s manufacturing capability and boost the country’s international competitiveness through incentive mechanisms was in evidence last month, as a new high-voltage (HV) cable manufacturing facility – partly funded by government – was officially introduced to the market. Natalie Greve has the story.

Natalie Greve:
The R150-million CBI electric: African cables (CBI) facility, in Vereeniging, is set to become the first in sub-Sahara Africa to design and manufacture HV underground electric cables up to 275 kV with conductor sizes of up to 2500 mm².

These cables would enable large South African energy consumers, such as municipalities and metropoles, to achieve a distribution of up to 350 MVA, 132kV, and 547 MVA, 275kV, on a single cable circuit.

CBI CEO Alan Dickson said at the launch of the facility that the plant and machinery had been funded by shareholders and further supported by the Department of Trade and Industry’s Manufacturing Competitiveness Enhancement Programme, or MCEP, which contributed 35%, or R45-million, of the total capital investment.

CBI CEO Alan Dickson

Natalie Greve:
He noted that South Africa’s growing electricity demand as well as the group’s longer-term intention to expand into Africa further bolstered the argument for the capacity expansion.

Alan Dickson

Natalie Greve:
Also speaking at the launch, Trade and Industry Minister Dr Rob Davies described the facility as a concrete example of government’s efforts to boost industrialisation in South Africa through “bolder” support programmes and interventions.

Trade and Industry Minister Dr Rob Davies

Natalie Greve:
The first recipient of cables from the facility would be the City of Cape Town, which would receive a 132 kV, 1 600 mm² underground cable system in June, while CBI was also currently involved in installing a 400 kV cable system at State-owned power utility Eskom’s Ingula pumped storage system, in KwaZulu-Natal.

Shannon de Ryhove:
Other news making headlines this week: The Chinese outline their plans for the mammoth R84-billion Modderfontein ‘city’; the NDPs infrastructure plans bring opportunity but also risk; And, the export strategy is given greater weight in South Africa’s new industrial plan.

Hong Kong-listed property development group Shanghai Zendai has outlined ambitious plans for the development of an R84-billion 22 km2 “city” on the sprawling Modderfontein property the company bought from South African chemicals group AECI for R1-billion in November.

Gauteng Premier Nomvula Mokonyane

Public Protector Advocate Thuli Madonsela says that, while the National Development Plan and its emphasis on infrastructure development provides significant opportunities for engineers, that opportunity also comes with great risk.

Public Protector Advocate Thuli Madonsela

The South African government’s latest Industrial Policy Action Plan places greater emphasis than was the case in the previous five versions on raising the country’s export competitiveness as part of what the Department of Trade and Industry is now calling a ‘Smart Reindustrialisation’ strategy.

Trade and Industry Minister Dr Rob Davies

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.

Edited by Shannon de Ryhove
Contributing Editor

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