A refractory products manufacturer from Nigeria is set to open shop in South Africa soon. Mr Chudi Obinwa who has been running a family business established by his father in the early seventies, says he is very excited that his business will start operating in South Africa.
Eunaco Refractionaries Limited, which manufactures ceramic heat containment products, has established a joint venture with a South African company based in Richards Bay and will be operating as J Manuel Supplies and Logistics.
Obinwa says he did this in order to ensure that he complies with the regulations and requirements of doing business in the country.
“Our products will be manufactured under our name from February 2014 in South Africa and we expect to contribute in job creation and increasing the skills development levels of South Africa,” says Obinwa.
He adds that his company chose South Africa because of its strategic location in terms of access of trade from Asia. He says South Africa has the expertise and technology and therefore it makes business sense for him to start an operation here.
“We are looking at importing raw material from China, manufacture our goods in South Africa and export them to Nigeria, Cameroon, Ivy Coast and Benin,” he adds.
According to Obinwa, manufacturing his products in South Africa will cost less than doing so in Nigeria. He says a market has already been established in those areas and that South Africa has the expertise that they require.
Obinwa adds that he met with the Deputy Minister of Trade and Industry, Ms Elizabeth Thabethe and was very happy to learn about the government support and incentives that are offered by the South African government to foreign companies wanting to invest in South Africa.
“Deputy Minister Thabethe promised to avail officials from her department who will assist us to access these incentives so that we can benefit from government support in South Africa. Accessing these incentives will assist us to keep our prizes low and in that way it would be easier for us to conquer the market,” he adds.
During the various business seminars held as part of the last week’s Outward Selling and Investment mission in Nigeria, Deputy Minister Thabethe encouraged Nigerian companies to invest in South Africa and urged them to apply for incentives that the South African government has created to support foreign companies investing in the country.
Enquiries:
Sidwell Medupe, Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
Follow us on Twitter: @the_dti
