Fluorochemical Expansion Initiative (FEI)
24 March 2009
Chief Executive Officer of Nuclear Energy Corporation of South Africa
(NECSA), Dr. Rob Adam
Managing Director of Pelchem, Mr Benji Steynberg
Incumbents of Fluorochemical research chairs, Professors Daresh Ramjugernath of
the University of KwaZulu-Natal and Philip Crouse of the University of
Pretoria
Department of Trade and Industry officials
Distinguished guests
Ladies and gentlemen
The establishment of the Fluorochemicals Expansion Initiative and
Fluorochemicals Centre of Competence are being supported as part of the
advanced manufacturing technology strategy. It is hoped this will result in the
beneficiation of a wide range of downstream products from South Africa's
abundant resources of fluorspar. Ultimately, we look forward to the creation of
new business ventures and firms that will support economic growth and
development in South Africa.
Although South Africa has the third largest reserves of fluorspar in the
world, we are currently beneficiating less than five percent of our fluorspar
exports into higher value fluorochemical products. The challenge for the key
role players of the centre of competence is to assist in significantly changing
this ratio over the next five to 10 years.
Notwithstanding the current economic downturn, my department is committed to
stepping up strategic investments in research, development, and innovation
activities that support the twin objectives of growing our economy and
improving the quality of life for our people. However, within the constrained
fiscal environment, there will be consistent pressure on us to show a high
social return for the innovation investments that we make. I am confident that
the team responsible for this initiative are ready for the challenge, and I can
assure you that the Department of Science and Technology will provide whatever
support it can.
In launching the initiative, it is useful to reflect on where we're coming
from. It is not possible to talk about the South African chemical industry
without mentioning Sasol. As you are aware, Sasol's first research and
development was in making the Fischer-Tropsch processes commercially viable.
Sasol is now an innovation-focused, major global supplier, with ongoing
investment beyond the shores of South Africa. This is what the Fluorochemicals
Expansion Initiative (FEI) should aspire to.
The chemicals sector remains a key growth area for South Africa and, as
global economies recover, the demand for chemicals will increase. The current
downturn provides a strategic opportunity for South Africa to grow this
sector.
But this will require the alignment of strategies and active support from a
range of government departments. I believe the current close working
relationships in respect of the FEI will grow from strength to strength.
One of my department's priorities is to address the need to grow high level
human capital rapidly in a range of areas. For example, in 2005, the department
intervened to preserve the high level fluorine chemistry skills that existed
within the Nuclear Energy Corporation of South Africa (NECSA) at the time. The
department made R20 million available to address that challenge, and we
congratulate NECSA on the progress made in fluorine chemistry research.
This support was made available because after assessment, it was realised
that South Africa had the ability to expand its fluorochemical industry by a
factor of 10 over the next nine years, which is in excess of R1 billion, by
building a world class, high value add, fluorine-based industry, with fine
chemical synthesis as a downstream industry. The vision was to develop an
industry that extended beyond Phelindaba and its area of focus. We are closer
to this dream with the progress made in terms of clustering a range of
halogen-based industries in the Richard's Bay area. Such developments are
required if we wish to be global players.
However, we are all aware of the challenge of attracting students, and
retaining skills and experience to enable our country to compete globally in
research. Of concern to us is that in the 2006/07 financial year, there were
less than two researchers for every 1 000 members of the workforce, as compared
with eight in Australia, and 11 in Japan. I congratulate and thank the
leadership team for ensuring that human capital development is prioritised
within the initiative.
The South African Research Chairs Initiative (SARCHI) is managed by the
National Research Foundation. It is geared towards the development of
high-level human capital to support key areas of competency in South Africa. We
remain committed to the goal of establishing 210 chairs by 2010, and are
increasingly championing the initiation of research and innovation chairs to
reinforce other initiatives.
In this regard, the Fluorochemicals Expansion Initiative led the way. During
the initial stages of strategising on how to achieve the goal of developing a
major new industrial sector, a gap was identified with regard to the level of
intensive research taking place at South African universities on fluorine
chemistry.
In response, the Department of Science and technology and NECSA jointly
engaged with universities to use the newly developed research chairs
instrument. These engagements resulted in the establishment of two competitive
chairs for Fluorochemicals. I look forward to seeing the first group of
students mentored under these chairs going on to support our industrial
development ambitions. The close involvement of two research chairs in the FEI
is a very encouraging development, and we thank them for being here today.
Ensuring that the close link between the research chairs and the
Fluorochemicals Expansion Initiative remains is vital for success. The research
work undertaken by the researchers must support the overall research programme
of the centre of competence. However, it is even more important to ensure that
the human capital developed under the SARCHI umbrella remains in South Africa
and becomes gainfully employed in projects that will emerge as a result of the
efforts of the centre of competence.
The close association between this centre of competence and the Research
Chairs Initiative is an example that we hope will guide other such
partnerships.
We need to address the innovation chasm between knowledge generators and the
market, which has resulted in the loss of innovative and high potential
technologies that could have been developed and commercialised for the economic
benefit of South Africa. My department is putting systems in place to deal with
the innovation chasm challenge.
One of the strides already made in this regard relates to the establishment
of the Technology Innovation Agency, which is planned to start operating later
this year. This agency will house and manage the centres of competence
programme, and will be providing integrated support and guidance to the
fluorochemicals Centre of Competence to ensure it is able to deliver in terms
of creating new businesses and jobs, and in positively affecting our balance of
payments.
The journey from a centre of competence to a fully-fledged industry in South
Africa requires close co-operation and interaction across the value
chain.
I therefore want to acknowledge the presence of officials from the Department
of Trade and Industry, which continues to partner with my department in
supporting this initiative by offering strategic and financial support.
Allow me, in closing, to once again congratulate NECSA for spearheading this
initiative. I hope the dream of establishing a halogen hub in South Africa will
be realised.
Thank you for your attention.
Issued by: Department of Science and Technology
24 March 2009
Source: Department of Science and Technology (http://www.dst.gov.za/)
