Posted: May 10, 2016
Deputy Minister of Trade and industry, Mr Mzwandile Masina – Mpact Polymers official opening
|The Minister of Environmental Affairs, Minister Edna Molewa,
The Minister of Economic Development, Minister Ebrahim Patel;
The Executive Mayor of the City of Ekurhuleni, Councillor Mondli Gungubele;
Group CEO of Industrial Development Corporation, Mr Geoffrey Qhena
Mpact Group CEO, Bruce Strong;
President of Coca-Cola Southern Africa, Therese Gearhart;
SAB Miller CEO, Alan Clark;
PETCO CEO, Cheri Scholtz;
Members of the Business Community;
Employees of Mpact
Members of the Media
Ladies and Gentlemen,
The National Development Plan, Green Economy Accord and the Industrial Policy Action Plan are policy documents that build on the successes of past industrial policy interventions and provide clear direction for sustainable, long-term industrialisation and industrial diversification. The key objectives of the IPAP, GEA and the NDP include the promotion of employment, reduction of poverty, investment in the green economy, building of infrastructure and the expansion of the economy.
This growing recognition of the need to transition towards a global green economy which results in improved human wellbeing and social equity, while significantly reducing environmental risks and ecological scarcities, places the onus on government to make sound sustainable development decisions that will lead to prolonged economic transformation.
Yesterday we launched the 8th iteration of our Industrial Policy Action Plan. The IPAP seeks to upscale productivity and industrial diversification of our economy and waste management and recycling are new frontiers for investment. This project fits in well with our industrialisation objectives, of building manufacturing capacity, job creation, innovation & technology, sustainability, local procurement and support to smmes.
The department has also setup the National Cleaner Production Centre (NCPC-SA) which is a national programme of government that promotes the implementation of resource efficiency and cleaner production (RECP) methodologies to assist industry to lower costs through reduced energy, water and materials usage, and waste management.
As a department we have a long history with Mpact and have supported the various Mpact projects through our various programmes and incentive schemes. We are proud that a domestic company like Mpact is investing in new plant and leading technology in PET recycling. We are therefore proud to be a part of today’s proceedings and to have contributed to the sustainability of the project through the approval of Mpact Polymers as a Greenfield project for the Section 12I Tax Allowance Incentive and a training allowance. On the investment of
R 350 million, the dti has contributed R 99 947 747 million as an investment allowance and R 2 850 000 million as a training allowance.
In December, President Zuma announced an Inter Ministerial Committee on Investment and private – public sector approach to investment, InvestSA. the dti through Investment South Africa division, has been working closely with Mpact specifically on unblocking issues with different spheres of government such as the electricity access and connectivity.
Through the introduction of the Section 12I Tax Allowance, aimed at stimulating manufacturing, the dti is combining regulatory and market instruments; that is, by offering a green tax allowance and mobilising private financial resources to invest in energy-efficient industrial development, skills and green jobs.
This assistance to the manufacturing sector to enhance energy efficiency and skills is offered amid rising electricity prices, global pressure for cleaner production and threats of trade restrictions on high carbon footprint manufacturing practices and products.
It has often been questioned to what extent tax incentives yield net benefits to society. Through South Africa’s Davis Tax Committee (DTC), it was recommended that tax incentives should be employed selectively, only after a thorough analysis of objectives and after alternatives have been explored.
DTC further recommended a thorough system for monitoring and evaluation to be designed and implemented. These principles have been central to this specific incentive programme and, using Mpact Polymers as a case study we can conclusively demonstrate the benefits that have accrued, and continue to accrue, to our economy and our environment.
PET recycling will generate an equivalent to virgin raw material directly from what was previously considered waste material. A big milestone is that this plant will recycle the same amount of bottles that would’ve initially been sent directly to landfills, thus ‘closing the loop’ with bottles being converted back into bottles.
The plant uses world-class technology to innovatively produce food-grade recycled PET raw material for use, primarily, in carbonated soft drink bottles. This plant contributes to The National Environmental Management Waste Act by providing a market for PET for recycling.
PET bottles that will be recycled at this plant are sourced from small and medium enterprises from all corners of the country, thereby creating much needed jobs in our communities and supporting the creation of black owned businesses.
It is also worth noting that Mpact Recycling has helped more than 40 entrepreneurs to start recycling businesses and provides further support to its buy-back centres that purchase material; and has set up sorting and baling facilities that provide further work opportunities.
Again recent recycling collection initiatives that we have noted include buy-back centre set ups in Empangeni and collections at a landfill site in Hluhluwe, both in the Zululand area. Other initiatives include establishment of buy-back centres in Mabopane and Soshanguve around Pretoria, Diepkloof in Soweto as well as Daveyton and Tsakane in Ekurhuleni.
Bottle collection results in job creation, creating value and income that grows the green economy in line with national and regulatory bodies as well as fiscal reform mandates. With the assistance of provincial and local government, we can make it easier for job-seekers to benefit from this initiative and help us meet our overall job creation mandate. This plant is important as it creates more than 1000 indirect jobs but more so direct jobs here in Wadeville, Ekhurhleni.
Our investment division entered the impact PET project at the Annual Investment Meeting in Dubai. On the 11th April, I had the pleasure to receive the runner up Award for best project facilitated and I would like to share this award with the Mr Bruce Strong, CEO Mpact
Congratulations to Mpact Polymers on this achievement and thank you continuing to invest in South Africa.. Your commitment to saving our environment and confidence in growing the South African manufacturing sector is encouraging. We implore you to continue on this journey towards making South Africa a model country when it comes to sustainable manufacturing, because we believe this will put us at the forefront of the ‘fourth Industrial Revolution’, with a comprehensive and globally shared view of how energy efficient, modern technology is affecting our lives and reshaping our economic, social, cultural, and human environments.