Pretoria - The launch of AVK Holdings manufacturing facility will go a long way to strengthen localisation by supporting small and medium enterprises, says the Department of Trade and Industry (dti).
Speaking at the launch of the R200 million facility in Alberton, Gauteng, the dti’s Deputy Director General, Malebo Mabitje-Thompson, said the plant will support the growth of downstream industries.
“This investment, through its forward linkages, will deepen localisation by supporting the growth of downstream industries, including small and medium enterprises through the additional procurement of related goods and services.
“The investment is also strategic and important in terms of our Industrial Policy Action Plan (IPAP), building productive capacity towards full-scale industrialisation,” she said on Wednesday.
The state-of-the-art valve manufacturing facility, with improved engineering process, will also include a training academy that will provide skills development to 1 500 workers to make the production process efficient. So far, 114 jobs, 84 of which are artisan positions, have been created.
Products manufactured in the new facility will be used in the water, wastewater, gas, mining, steel, pulp and paper, as well as chemical industries.
Mabitje-Thompson said the valve and actuator sectors are two of the key priority sectors in IPAP and continue to play a pivotal role in manufacturing because they represent a significantly large Opex [operating expenditure] and Capex [capital expenditure] spend of State-Owned Entities, municipalities and water boards.
“The increase in government infrastructure projects in the water, wastewater and power sectors will contribute to sustaining the valve market and benefit companies such as AVK. IPAP calls for greater enhancement of public procurement.
“This investment ticks all the boxes of our industrial policy. It has been possible through government policy and IPAP tools in leveraging public procurement and the designation of valves and localisation thereof,” she said. – SAnews.gov.za
