MINISTER DAVIES RE-LAUNCHES A DEFY PRODUCTION FACILITY WORTH MORE THAT R120M

MINISTER DAVIES RE-LAUNCHES A DEFY PRODUCTION FACILITY WORTH MORE THAT R120M

The Minister of Trade and Industry, Dr Rob Davies has re-launched the new Defy ‘Side-by-Side’ refrigerator production facility worth more than R120 million in  East London today. Minister Davies congratulated Defy with the launch and said this was in line with Industrial Policy Action Plan (IPAP).

 “The current work is building on last year’s IPAP, which recognised the White goods industry as a strategic one with a growth potential. Hence we developed a White goods Strategy with key interventions of upgrading the technology and meeting the environmental imperatives through Energy Efficiency requirements. This year’s IPAP has recognised the new entrants in the market as well as mergers of old companies like Defy  with Arçelik, world reputable MNCs as a step that bodes well with our Foreign Direct Investment efforts and manufacturing support,” said Minister Davies.

He expressed his excitement about the investment and encouraged more businesses to follow the example of companies like the Arçelik Group.

“The re-launch of this factory shows the confidence that the Arçelik Group and other investors have in South Africa’s economy and the manufacturing sector in general. Through the Manufacturing Incentive Programme we provided a grant to the value of R30 million which supported investment of about R200 million in upgrading the Ezakheni factory in Ladysmith.  We are also pleased that Defy has confirmed  that once the production volumes reach forecasted levels, a second shift will be introduced which will create about 100 additional permanent jobs,” highlighted  Minister Davies.

The Chairman of the Board of Directors for Koç Holding (which owns Arçelik), Mr Mustafa Koç said Arçelik acquired Defy in 2011, with the biggest industrial investment made by a Turkish company in Africa.

“The young population of the continent, growing urbanization and the rapidly increasing middle class had convinced us to make this investment. We believe that Defy South Africa and the African continent have immense potential. We are here to support Defy to excel on this opportunity,” said Koc.

He added that since the acquisition they had invested over R500 billion in upgrading Defy’s three manufacturing sites and technology.  Furthermore, Koç said their goal was not only to supply the South African domestic market but also to make Defy a production center for export markets in Arçelik’s global supply network.

Minister Davies said the launch of tripartite Free Trade Area in Egypt next month will support industrial development and link infrastructure development within the region. The tripartite Free Trade Area will include the Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC), and East African Community (EAC).   

Caption:Minister Davies and Defy Executives cutting the ribbon at the launch of  Defy production facility in East London