MISTER DAVIES UNVEILS A NAMPAK INVESTMENT BOTTLING FACILITY WORTH MORE THAN A BILLION OF RANDS

MISTER DAVIES UNVEILS A NAMPAK INVESTMENT BOTTLING FACILITY WORTH MORE THAN A BILLION OF RANDS

The Minister of Trade and Industry, Dr Rob Davies together with the Chief Executive of Nampak: Mr Andre de Ruyter, have unveiled a R1.2 billion third glass furnace investment project at Roodekop in Germiston.

Speaking at the launch, Minister Davies said that in total the Department of Trade and Industry (the dti), has approved three (3) Nampak Products Limited projects for the 12I Tax Allowance Incentive programme, including the third furnace.

“The total investment value for the three projects is R2-billion and they have a potential to create additional jobs.  the dti has committed a total of R849million and R12million on both the investment and the training requirements of the three projects respectively”, said Minister Davies. 

He said the third furnace investment is a significant investment for Nampak, as it will enable them to increase their capacity by 56%, thus extending their position as a glass packaging manufacturer in South Africa.

The product manufactured at the third furnace includes Glass Bottles for the beer, wine, food, carbonated soft drinks and alcoholic beverages market.

Davies also emphasised the importance of ‘greening’ businesses and encouraged companies to be environmentally responsible

“We see this as an important element of competitiveness. Companies around the world are showing themselves to be less carbon intensive. We have a Clean Production programme and have introduced standards for energy efficiency through the South African Bureau of Standards. Lastly, we also send a very clear message to businesses that being more environmentally responsible is a key element of competitiveness”, concluded Davies.

Nampak’s Chief Executive Officer, Mr Andre Ruyter said that the government’s section 12I Tax Allowance Incentive for a brownfields investment has been a key enabler for the third furnace project and they were very proud to be part of the ongoing success of the Industrial Policy Action Plan (IPAP).

“Over the years, a significant amount of capital has been invested to upgrade the factory’s infrastructure and manufacturing processes, while increasing capacity. The third furnace will enable Nampak Glass to run the 3 furnaces continuously throughout the year and increase the capacity to 315 000 tons, an additional capacity of 120 000 tons,” said Mr de Ruyter.

The 12I Tax Incentive aims to accelerate economic growth in the industrial sector and support the Industrial Policy Action Plan (IPAP 2), particularly in terms of job creation, training and energy efficiency. The two components of the programme comprise an investment allowance of up to a maximum of R900 million, and a training allowance of up to a maximum of R30 million per project, dependent on compliance with certain criteria.

Both allowances are deductible from the taxable income of the applicant company, thereby reducing their tax liability.