The Minister of Trade, Industry and Competition, Mr Parks Tau, has praised Bell Equipment and Mondi South Africa as proof of what South African manufacturing can achieve, following site visits to the two companies’ operations in KwaZulu-Natal on 09 October 2026.
The visits form part of the Minister’s ongoing engagement with manufacturers that are growing local production, creating jobs and earning export revenue for the country. The Ministers visit was facilitated by the Zululand Chamber of Commerce and Industry (ZCCI). At each site, the Minister toured the operations and met the companies’ leadership to discuss performance, investment plans and how government can support further growth.
The visits come at a difficult time for the sector. According to the latest Statistics South Africa data, released on 8 October 2026, manufacturing production fell by 4.3% in August compared with a year earlier. Output is down 1.7% for the first eight months of 2026, after contracting by 1.3% in 2025. Factory output remains around 10% below its 2019 level, and large manufacturers are using only about three-quarters of their production capacity. The wood, paper, publishing and printing division, which includes Mondi’s products, has now shrunk year-on-year for more than a year. Both companies show what is at stake: the jobs, suppliers and export earnings that local production sustains.
“We must be honest about the state of manufacturing in our country. The sector has been in decline, and too many factories have been forced to cut capacity in the face of cheap imports. That is why companies that keep investing here matter so much. Our job is to stand with them and to use every instrument we have to rebuild our industrial base,” said Minister Tau.
“Bell Equipment is a South African company that designs, engineers and builds heavy machinery here at home and sells it to the world. This is exactly the kind of industrial capability we want to grow. I am proud of what this company and its workers have achieved,” said Minister Tau.
Bell Equipment’s contribution is substantial. The company operates 40 000 square metres of manufacturing space under roof and employs more than 3 000 people directly.
It sources from more than 900 local suppliers, over 500 of them in KwaZulu-Natal. It uses more than 14 000 tons of locally produced steel. More than 100 engineers at the company generate South African intellectual property. Bell invests over R700 million a year in skills development, training and corporate social investment. Its machines are sold in 80 countries.
Over the past ten years, Bell Equipment has:
- contributed R5 billion to the fiscus;
- spent R40 billion on local purchases;
- paid R7 billion in salaries and wages;
- earned R60 billion in export revenue; and
- trained 550 apprentices.
“These numbers tell a clear story. When we manufacture locally, the benefits flow to suppliers, to workers, to young people learning a trade and to the national budget. R60 billion in export earnings shows that South African-made products can compete in the most demanding markets,” said Minister Tau.
The company briefed the Minister on its plans for the next phase of growth. Bell sees its motor grader as a larger market opportunity than its articulated dump trucks. It plans to generate further intellectual property, expand its manufacturing footprint and double its workforce. It also intends to deepen localisation through contract manufacturing and to pursue opportunities in electric vehicles and defence.
Bell noted that the Automotive Production and Development Programme (APDP) is working well for the company. Management raised areas where further support would help unlock its expansion. These include extending APDP support to the grader, strengthening preference for locally made products, access to manufacturing incentives for the grader, and support for expansion in partnership with the Richards Bay Industrial Development Zone.
“Bell has shown what is possible. They continue to fly the South African flag high. Our task as government is to make sure that our policy instruments help companies like this to grow, invest and employ more South Africans. The dtic will continue to engage the company on the proposals it has put forward,” said Minister Tau.
At Mondi South Africa, the Minister saw an integrated forestry, pulp and paper business. The company manages forestry operations across four areas and runs two mills, at Richards Bay and Merebank in Durban. It produces pulp, containerboard for agricultural and industrial packaging, and uncoated fine paper.
Mondi employs about 1 500 people and supports some 10 000 livelihoods every day through its employees, contractors and service providers. It supports 3 500 rural timber growers. The company has been a Level 1 B-BBEE contributor since 2019. Its youth development programme takes on about 80 students a year and absorbs more than 90% of them into the business. More than 40% of the intake is women.
In 2025, Mondi contributed R737 million in taxes and associated spend, generated R3.4 billion in export revenue and paid R1.7 billion in employee pay and benefits. At the 2018 South Africa Investment Conference, the company pledged R8 billion in new investment. It has since approved R14 billion, R6 billion more than its commitment.
The largest of these investments is Project Vuselela, a R3 billion biomass boiler at Richards Bay that will replace three coal-fired units. Planned for commissioning in June 2027, it is expected to cut carbon dioxide emissions by 350 000 tonnes a year and reduce the mill’s greenhouse gas emissions from coal by 92%. The project has already created more than 900 jobs. It has engaged over 3 800 small-scale timber growers, 62% of them women-led businesses, in a new local biomass economy.
“Mondi shows that decarbonisation and industrial growth go together. This boiler will cut emissions, create a new market for small timber growers, many of them women in rural areas, and make the mill more competitive. This is the just transition in practice,” said Minister Tau.
The company was candid about the pressure it faces. Imports of the products Mondi makes locally, namely bleached pulp, containerboard and uncoated fine paper, nearly doubled between 2023 and 2025, from about 105 500 tonnes to almost 210 000 tonnes. Imports in the first half of 2026 were 19% higher than a year earlier.
“We have heard the industry’s concerns clearly. The pulp and paper sector contributes R55 billion to the economy and supports around 150 000 jobs. We cannot allow surging imports to hollow it out. The application will be dealt with through the proper trade remedy processes, and the dtic will work with the industry on the instruments available to protect its long-term sustainability,” said Minister Tau.
The Minister will conclude his programme with an engagement hosted by the Zululand Chamber of Commerce and Industry (ZCCI), where he wil meet business leaders from across the region. The discussion will focus on how local firms can share in the growth of anchor manufacturers such as Bell and Mondi, and on what government and business must do together to arrest the decline in manufacturing.
The visits reaffirm government’s commitment to building South Africa’s industrial base, growing exports and supporting companies that create quality jobs and local value chains.
ENDS
For further enquiries contact:
Kaamil Alli – Ministerial Spokesperson
Mobile: +27 82 520 6813
WhatsApp: +27 82 520 6813
E-mail: KAlli@thedtic.gov.za
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Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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