Media briefing

Kroonstad is likely to become the Free State provinces’ centre for the manufacture of medical products such as bandages, gauzes, abdominal swabs, hospital linen, uniforms, linen savers, etc. The establishment of this factory is a much needed shot in the arm for job creation in an area that has experienced high unemployment in the recent past. The Free State Provincial Government has secured an investment of up to R10 million of capital for this venture in conjunction with Unicore Trading (Pty) Ltd.

The Kroonstad entity will be the pilot for other manufacturing entities to be set up in Parys and Sasolburg which will ultimately form part of the Free State “manufacturing triangle”. These entities are deemed to be best located within the Free State because of the central situation of the province which lends to logistic ease and cost efficiency with its excellent infrastructure.

Initially the Kroonstad facility will begin with an employee workforce of about 150, but will at full production employee about 350 floor workers directly in the manufacturing process. In terms of the bandage and gauze manufacture these will be new product and technologies for the Kroonstad area, and will impart significant new skills transfer to the workers.

Parys is earmarked for the establishment of a full safety product manufacturing facility, products ranging from arc flash suits, fall arrest harnesses and belts, chemical suits, life jackets etc. It is anticipated that about 450 people will be employed in this facility.

The location of the Sasol plant in Sasolburg has prompted the decision to locate a medicals product extrusion plant in the area. Sourcing of medical grade pvc granules from one of the country’s premier marques, will ensure the manufacture of quality medical grade plastic face masks, plastic chest drains, nasal cannulae, Yankauer suction units, suction catheters etc. This unit will employ between 80 to 100 people.

The Free State province will also serve as the springboard into Africa, for companies wishing to invest in South Africa. Qatar Germany Medical Devices (QGMD) is a Doha based manufacturer of quality safety syringes, needles and IV catheters, utilising worldwide patented technologies and processes. Qatar Pharma is a 20 000 sqm manufacturing facility also based in Doha and produces world standard IV Fluids.

Atramat, based in Mexico is presently the world’s fourth largest manufacturer of absorbable and non absorbable sutures.

The above companies are CE marked, ISO certified entities which manufacture under the most stringent quality controls. All will ensure the establishment of local manufacturing units to be based in the Bloemfontein environs to create a local centre of excellence in medical manufacture. Besides the technology that will be passed on to South Africa, these companies will ensure foreign direct investment in the establishment of these plants.

The establishment of these manufacturing entities will have long term benefits for the Free State Province. Amongst others will be transfer of new skills into the local community, numerous new micro and small entities will evolve from these manufacturing entities from logistic support to supply and also the contribution to the currency circulation within the province is estimated to be in excess of four times, resulting in increased contribution to the provincial fiscus.

The cornerstone project namely the Kroonstad manufacturing facility will be officially opened by President Jacob Zuma on 16 September 2010.

For more information please contact:

Elsie Ntsane
E-mail: ntsane@detea.fs.gov.za

Josial Ramokoena
E-mail: ramokoenam@detea.fs.gov.za

Lebogang Maloale
E-mail: maloalel@detea.fs.gov.za

Source: Department of Economic Development, Tourism and Environmental Affairs, Free State Provincial Government

Province

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