Premier Nomusa Dube-Ncube asserts that the development of Synergy Blenders’ R120 million chemical production facility in KwaZulu-Natal demonstrates the province’s resiliency and is an economic boost.
Dube-Ncube delivered these statements during the inauguration of the 47% caustic soda liquid dissolving and blending facility in the Dube Trade Port Special Economic Zone (SEZ) in La Mercy, Durban.
Dube-Ncube, who was accompanied by Siboniso Duma, the MEC for Economic Development, Tourism, and Environmental Affairs, said that the investment represents fresh optimism for the province after the civil unrest in July 2021 and the devastating flooding in April of this year.
“This investment is not only timely but is a vote of confidence in the Dube Trade Port, our Special Economic Zone,” Dube-Ncube said on Thursday.
Synergy Blenders is a local chemical manufacturing company that is wholly owned by African-Americans that makes liquid caustic soda. It is anticipated that the facility will be completely operating by April 2023.
The firm obtained a R70 million loan from the Industrial Development Corporation and an R50 million grant from the Department of Trade, Industry, and Competition’s Black Industrialist Scheme.
Premier emphasised efforts taken by the government to stimulate economic development, noting how the location of Synergy Blenders’ factory inside the Dube Trade Port Special Economic Zone would guarantee operational efficiency and reduce the transportation costs of imported raw materials.
“What Synergy Blenders is launching today is a manufacturing plant that will produce a chemical product used as an input of a variety of sectors from pulp and paper to textiles and mining. With only three established producers of 47% caustic soda liquid in the country, the local manufacturing of caustic soda is currently unable to meet the demand and hence an average of 370 000 tons is imported into the country annually.
“This highlights the potential for growth for this development by Synergy Blenders, which marks yet another step towards growing the economy of KwaZulu-Natal. As the provincial government, we are looking forward to seeing increased competition in the space and anticipating a locally produced product that is of a high-quality meeting international standards, yet cost-effective for the benefit of the market and other stakeholders in the value chain,” the Premier said.
She also emphasised that, as the province begins on the road to economic recovery, one of its top goals is to foster a business-friendly environment across the value chains of major economic sectors.
“We wish to point out that Synergy Blenders Manufacturing Plant will become an integral part of our Provincial Industrial Strategy, which enjoins us to stimulate the manufacturing industry in order to increase employment. At this stage, we wish to inform companies looking at investment opportunities in KwaZulu-Natal that we are open for business,” Dube-Ncube said.
Dube-Ncube, highlighting the strategic significance of SEZs, said that their developmental goals include the development of export-oriented sectors, the attraction of foreign direct investment and the transfer of knowledge, and the creation of job opportunities.
“The SEZs stand to be an effective instrument to resolve the disturbing levels of inequality, poverty and unemployment, which are strongly marked by spatial, racial, class and gender factors. Our people need jobs and we should do everything possible to bring these jobs closer to them so that they do not spend their meagre resources travelling to work,” she said.
Dube-Ncube thanked the Department of Trade, Industry, and Competition and the Industrial Development Corporation for their participation in the Black Industrialist Scheme.
In addition, she highlighted the contributions of other organisations, such as Trade Investment KwaZulu-Natal.
“It is through such a partnership that we will be able to put this province onto a path of growth and prosperity. It is our wish that as we move forward, Synergy Blenders Manufacturing Plant will be in a position to produce quality products that will ensure your competitive edge and brand loyalty,” the Premier said.