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CONSTRUCTION WORLD
MARCH
2014
Coega’s business managers also
say that despite challenges relating
to the global economic climate and
changes in funding models of IDZs
to Special Economic Zones (SEZ), the imme-
diate future looks rosy for Coega. A number
of industries are about to take off as a series
of new investors complete construction and
move toward operation.
Major plants opening in the Coega IDZ
this year include Chinese automotive giant,
First Automobile Works (FAW) truck assembly
plant, the DCD Wind Tower manufacture
plant, and Air Products’ air separation unit.
Also firing on all cylinders this year is Agni
Steels which is about to start production of
its smelting and steel billet operations.
Automotive & Logistics
The automotive sector looks particularly
exciting, with all eyes on FAW, says Gustav
Meyer, CDC automotive business manager.
“Construction will wrap up soon at
FAW and will be followed by the commis-
sioning phase,” says Meyer. “Adding
FAW to the bouquet of auto giants here
means a new injection for the region par-
ticularly for artisans and other skilled
workers to be employed at the region’s
newest Original Equipment Manufacturer
(OEM). FAWwill have employed close to 1 000
people at the conclusion of the final phases
of construction.”
Meyer says the CDC is expecting some
exciting developments in the automotive
and logistics sector and is also hoping to
conclude discussion with another OEM.
He also confirmed that two interna-
tional logistics companies have committed
to establishing intermodal container depots
at Coega.
Plans for the expansion of UTI Sun
Couriers and Digistics – both existing IDZ
tenants – will commence in this year while
construction on new 11 000 m cold storage
facility for an investor in the IDZ will start in
the first quarter of 2014.
Agro-processing
Coega Dairy continues to grow from strength
to strength, according to the CDC. The past
year also saw the emergence of Coega
Cheese, a partnership between Coega Dairy
and Famous Brands.
“This was a very exciting development
and clearly indicates the interface and
supply chain links that can be created within
the Coega IDZ,” said Dr Keith Du Plessis, CDC
agro-processing business manager.
Coega Dairy is also using neighbouring
investor, PE Cold Storage, to store its
overflow of some products before it is
distributed to suppliers, another indication
of strong supply chain development within
the Coega IDZ.
“Major strides have also been made in
terms of CDC’s drive to establish an aquacul-
ture development cluster within Zone 10 of
the Coega IDZ. Approximately 300 hectares
of land has been identified in Zone 10 and
a three month feasibility study commenced
in February 2014. All indications are that the
aquaculture cluster could create up to 3 000
direct jobs by 2020.”
Renewable and energy sector
Wind energy
DCD will complete construction of their
facility by early February and start manu-
facture of wind towers in the first quarter of
this year. The 23 000 m² factory will have the
capacity to produce 110 wind towers a year.
DCD recently announced that it has fixed
contracts with wind energy company Vestas,
German wind turbine maker Nordex and
Siemens, with the aim of becoming a world
class supplier in the global market.
Solar
Coega is poised to make a major announce-
ment regarding a solar power investor in
the next few months, said business
development manager Nkuli Mxenge-May-
ende. “This will start to establish Coega as
a major player in the renewables sector,
considering DCD’s new facility and the wind
power generation due to take place after
the third and fourth round windows of the
Renewable Energy Independent Power
Producer Procurement Programme.”
Power generation
GDF Suez has started to lay the ground-
work for construction of its new R3,5-billion
peaking power plant, Dedisa, the largest
construction project at the Coega IDZ to
date. The station will create about 1 000,
mainly local, construction jobs and comple-
ment the city’s power supply.
Chemicals
Two air separation units are on the
cards for Coega IDZ. Air Products is well
underway with their plant and Afrox recently
appointed a contractor and will start
construction February employing over 300
people in construction phase. The Air Prod-
ucts plant will be commissioned in the third
quarter of 2014.
Steel beneficiation
Agni Steels South Africa’s plant is almost
ready to kick into gear said business
manager, Sadick Davids Agni already
performed a successful test of the plant’s
PROJECTS AND CONTRACTS
1. Agni Steels.
2. AMP Terminals.
3. CDC Headquarters.
ROSY
The Coega Development Corporation (CDC) is looking
forward to an exciting 2014. “2014 will bring more
construction activity in the Coega Industrial Development
Zone (IDZ), new investment and a series of corporate
social investment (CSI) coups,” says Ayanda Vilakazi, CDC
head of marketing and communications.
OUTLOOK
4. Coega Dairy.
5. DCD Wind Towers.
6. FAW.
1.
2.
3.
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