On Friday, President Cyril Ramaphosa delivered the keynote address at the Sandvik Khomanani plant in Kempton Park.
The company has been operating in South Africa for over 70 years.
Speaking at the inauguration, Ramaphosa said Sandvik’s investment in local production capacity is a vote of confidence in South Africa and its mining sector.
“This will allow Sandvik to shift some production responsibilities from other parts of the world to this plant. This investment goes beyond the monetary aspect. It is an investment in skills, technologies and capabilities. It’s an investment in other people and productivity.
“Sandvik’s investment in local production capacity is a vote of confidence in South Africa and its mining sector.
Ramaphosa added that industrialisation and production are key pillars of South Africa’s economy.
“Given that industrialisation and production are key pillars of South Africa’s economic recovery and reconstruction plan, it is gratifying to see this commitment become a reality in Gauteng.
“This is a testament to the courtship between our two countries. It is a courtship that has its roots in solidarity and cooperation, and continues to express itself in investment, industry and exchange.
“It was also smart to hear that location is the cornerstone of their operations here. This is our purpose to strengthen domestic production capacity to supply local and foreign markets, expand economic progress and create more jobs. “
READ THE FULL SPEECH BELOW:
REMARKS BY PRESIDENT CYRIL RAMAPHOSA AT THE OPENING OF THE SANDVIK KHOMANANI FACILITY
KEMPTON PARK, EKURHULENI
SEPTEMBER 9, 2022
(Review!!!)
Programme Director, Ms. Mahashane Myakayaka,
His Excellency Ambassador Håkan Juholt of the Kingdom of Sweden,
Mr. Reinhard Reinartz, President of Mechanical Court, Sandvik,
Cllr Fanyana Nkosi, Acting Executive Mayor of Ekurhuleni Metropolitan Municipality,
Directors and staff of Sandvik,
Representatives of companies and workers,
Guests
Ladies and gentlemen
Good morning.
It is with a wonderful emotion that I sign up for you at the opening of this establishment.
As a company that has been present in the South African market for more than 70 years, Sandvik has established a reliable presence in this country.
With its regional headquarters in Kempton Park, it manages operations in Zimbabwe, Namibia, Botswana, Mozambique, Angola and Madagascar.
This puts Sandvik in an ideal position to take advantage of the opportunities presented through the African Continental Free Trade Area.
At the 3rd South African Investment Conference in November 2020, Sandvik committed to invest R350 million to expand its refurbishment and warehouse plant here in Kempton Park.
Today, we see the income from that investment.
In my State of the Union address, which I delivered in February of this year, I said that the government is striving to create the situations that allow businesses, large and small, to emerge, grow, new markets, create new products, and rent more employees.
The one in this facility is a testament to this commitment.
We have heard that the Khomanani production plant is one of Sandvik’s largest and most complex facilities in the world, combining operations at five separate sites and housing 550 employees.
This will allow Sandvik to shift some production responsibilities from around the world to this plant.
This investment goes beyond the financial.
It is an investment in skills and capabilities.
It’s an investment in other people and productivity.
Sandvik’s investment in local production capacity is a vote of confidence in South Africa and its mining sector.
Given that industrialisation and production are key pillars of South Africa’s economic recovery and reconstruction plan, it is gratifying to see this commitment become a reality in Gauteng.
Talks with Sandvik to reopen its production plant in South Africa began in 2015 at the ninth consultation of the South Africa-Sweden Binational Commission in Stockholm.
This is a testament to the strength of courtship between our two countries.
It is a dating that has its roots in solidarity and cooperation, and continues to be expressed in investment, industry and exchange.
I enjoyed the property.
It’s smart to interact with staff and, in particular, to see women represented in giant numbers in the workforce.
It’s also smart to hear that location is the cornerstone of your operations here.
This is our purpose to strengthen domestic production capacity to supply local and foreign markets, expand economic progress and create more jobs.
Expanding production will make our economy more inclusive and create more opportunities for new entrants in the commercial sector.
Five years have passed since Sandvik identified its own local production facility for the full production of the new low-bed truck, Sandvik LH115L.
I am very pleased to be informed that this product is absolutely manufactured in South Africa for the rest of the African market.
Mining has been the foundation of the South African economy and given our vast mineral reserves, mining will continue to play a central role in our economy for many decades to come.
Increased investment in mining, localization and enrichment contribute to extending the life of the mine, expanding mining exports, increasing capacities and creating jobs.
The capital goods mining industry has evolved throughout the mining sector to provide mineral extraction and processing equipment with productivity and safety, lower prices and efficiency.
The capital goods industry is important to the South African economy.
Capital goods will contribute to a new era of mechanization in our mining industry.
Contrary to the view that mechanization will lead to significant job losses in the mining industry, studies show that it will generate more employment opportunities.
The convergence between the data generation and machinery and apparatus industries is the basis of production and societies.
These are elements of the fourth business revolution.
The mining machinery and apparatus sector also has links with other sectors of the economy.
Companies that supply appliances to the mining industry have up-and-down links with suppliers of primary assembly, subassembly and portions, suppliers of specialized components and suppliers of uncooked curtains.
A developing local capital goods production sector will have a positive effect on other sectors of the economy, such as agriculture and construction, and further strengthen sectors such as banking, hospitality and tourism.
The increase in local production will contribute in particular to the revival of South Africa’s productive industry.
I am confident that their mining customers, some of whom are here today, are as grateful as we are for their continued investment in South Africa.
Our economy, like many others around the world, is suffering the devastating effects of the COVID-19 pandemic.
However, through those investments, through the expansion of our productive capacity, through the implementation of far-reaching economic reforms and through our efforts to do business, we are laying a solid foundation for expansion and employment.
This production facility represents an exciting new bankruptcy in Sandvik’s presence in our country and on our continent.
This underlines their preference for continuing to play a role in South Africa’s skills development, wisdom movement and local production capabilities.
Let me conclude by thanking Sandvik for its unwavering commitment to South Africa and its well-founded confidence in the long-term African mining.
As the call of this status quo is a sign, I agree, Ayi Khomanani.
thank you.
ISSUED BY THE PRESIDENCY OF THE REPUBLIC OF SOUTH AFRICA
www. lapresidencia. gov. za
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