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Tuesday, November 11, 2014

GOVERNMENT IS COMMITTED TO THE RE-BUILDING OF THE TOOL, DIE, MOULD SECTOR TO SUPPORT THE MANUFACTURING SECTOR - MINISTER DAVIES

GOVERNMENT IS COMMITTED TO THE RE-BUILDING OF THE TOOL, DIE, MOULD SECTOR TO SUPPORT THE MANUFACTURING SECTOR - MINISTER DAVIES

Government is committed to building and supporting the manufacturing sector as a key driver for inclusive growth, job creation and poverty alleviation. 

The Minister of Trade and Industry, Dr Rob Davies said this at the launch of the Tooling Centre of Excellence at the South African Nuclear Energy Corporation (Necsa) in Pretoria yesterday. The launch held in partnership with the Intsimbi National Tooling Initiative (NTI) and Necsa.

Davies said the demise of the SA Tool, Die, and Mould making (TDM) sector over the past 30 years has resulted in the loss off more than 80% of TDM manufacturing capacity. He estimates that the SA economy utilises on average more than R15 billion per annum of TDM equipment and maintenance services, of which only 20% provided by the local industry. He attests that this has not only had an adverse effect on the balance of payments, but resulted in significant loss of technical and engineering skills and maintenance support.  Given the centrality of the TDM sector, the broader manufacturing sector’s competitiveness has negatively impacted.

“The decline of the TDM sector led to the establishment of a partnership between the Department of Trade and Industry (the dti) and the Toolmaking Association of South Africa which gave rise to a multi-stakeholder intervention known as the National Tooling Initiative (NTI) programme. The NTI, as a rehabilitation strategy, aims to address production and technology challenges, skills deficit and transformation in the sector,” said Davies.

Davies also said the shortage of toolmakers in South Africa posed a serious challenge towards achieving the goals set out in the Industrial Policy Action Plan.

“Current toolmakers in SA are aging (average age of 55 years) and the number of properly trained toolmakers produced per year remains very low in comparison, resulting in a continuing shortage of toolmakers in a variety of manufacturing sectors.

Davies added that the dti understood the importance of the TDM sector in the economy and has to-date supported the NTI with over R260million of which R9 million has been invested to equip the Tooling Centre of Excellence at Necsa and said supplementary funds would be earmarked for future funding in an effort to developing a state-of-the-art facility. Davies emphasised “this investment is necessary and will assist SA in reversing the skills deficit, close the age gap and contribute to regaining the manufacturing competitiveness.”  

Addressing stakeholders at the same launch the Chief Executive Officer of the NTI Programme, Mr Dirk van Dyk said the NTI needs the industry participation in order for the programme to succeed.

Van Dyk said under the programme’s skills development pilot phase, there are  1 600 leaners in the pipeline at various FETs and centres of excellence undergoing training at different levels and that over 200 manufacturing companies have so far provided on-the-job training for the learners.

Van Dyk believes that the partnership with the industry will lead to a number of young people becoming entrepreneurs.


Caption: Minister Rob Davies and Necsa CEO Mr Phumzile Tshelane at the launch of the Intsimbi National Tooling Initiative in Pretoria yesterday.

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