South Africa’s investor confidence has received a boost with the Procter and Gamble Company’s (P&G) announcement of a significant investment of more than R1.6 billion in a new Green Field Manufacturing facility. This was announced by Mr Dimitri Panayotopoulos, the company’s vice chairman in charge of global business units, at a media conference that was held jointly in Johannesburg with Trade and Industry Minister Dr Rob Davies.
Davies said the announcement is a testimony to the important partnership that have been able to build between business and government and the role that business is playing in the economic development of our country.
‘This announcement is a further example of confidence by P&G manufactures in the future of South Africa. Since P&G entered the South African market, it has contributed to creating environmentally and socially responsible economic growth, and in particular, more South African jobs. Such investment clearly demonstrates the confidence in South Africa as an investment destination and South Africa as the gateway into the African Continent.’
Today’s announcement is not the first investment of P&G in the country. Currently the company has an existing investment of R500 million in a manufacturing plant for Pampers nappies in Johannesburg. Built in 2009, the Pampers plant attracted a further R6.6 million of investment from suppliers and created hundreds of jobs in South Africa.
Minister Davies said the total incentives that P&G received from the dti’s two scheme Enterprise Investment Programme and Foreign Investment Grant, for the Pampers nappies plant amount to R36.230,159.
The Minister also stated that Africa’s integration is imminent as it seeks to address the challenges which are posed by its small and fragmented markets, its insufficient diversification of trade and its low levels of intra-African trade. He said creating larger regional markets would increase specialisation and competition, providing a boost to manufacturing by offering improved economies of scale in industrial production.
P&G’s vice chairman in charge of global business units, Dimitri Panayotopoulos said their new investment would create a new multi-category production unit that will operate according to the highest sustainability standards. He said the unit will manufacture a range of products that would be an export hub for Southern and Eastern Africa.
“We aim to make South Africa P&G’s manufacturing hub for the markets of Southern and East Africa,” said Panayotopoulos. “Our global strategy is to maintain our strong momentum in developing markets. Africa in general and South Africa in particular—as the largest African economy - are thus of key importance to us. As in all developing markets, our business here in Africa will remain focused on leading brands that improve health, hygiene and household care, as well as substantial social investment programmes that uplift underprivileged families and communities.”
Panayotopoulos said the investment expansion announced today is expected to create over 500 additional jobs at P&G. Construction of the new plant is expected to commence in 2014 with production expected to commence in 2016 or early 2017.
The location of the site will be announced once all the preparations have been concluded. Panayotopoulos stated that the investment support provided by the dti helped them in making decision to further invest in South Africa.
The new plant will be built on a green field site which the company will acquire in the near future and will become one of the largest P&G facilities in Europe, Middle East and Africa.
Enquiries:
Sidwell Medupe, Departmental Spokesperson
Cell: 079 492 1774
Tel: 012 394 1650
E-mail: MSMedupe@thedti.gov.za
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