Pegas is a world-leader in nonwoven fabrics manufacturing, and this decision comes after eighteen months of negotiations and five due diligence reports. It will be the largest single manufacturing foreign direct investment that Wesgro and Into SA have secured since 2011.
The investment will create approximately 200 new employment opportunities for local residents, who will be trained and educated in the Czech Republic.
Construction and installation of the new production line is scheduled to take 30 months. All building materials during the construction phase as well as all raw material during operations will be sourced locally, while the machines used in the production will showcase the latest German Technology.
PEGAS Nonwovens CEO Frantiçek Rezac said, “The Western Cape was a natural choice for us when considering our African expansion. Its world class infrastructure and access to the rest of the continent provided us an opportunity we could not pass on.”
Into SA CEO Ralph M Ertner added, “Into SA is incredibly proud to have helped secure this momentous investment for the Cape and look forward to working with the relevant stakeholders to ensure its success and future collaborations.”
“Major investments like Pegas are a vote of confidence in the capable state we are building, backed by sound policies for ease of doing business and our vision of an energy secure economy. Our goal is to encourage investment with the least possible red tape. We are launching the Cape Investor centre later this year as a one-stop-shop for investors to complete local, provincial and national regulatory processes, under the professional guidance of a single relationship manager. We are also targeting R1-billion in economic savings and benefits by 2019 through our Red Tape Reduction Unit,” said Premier Western Cape Premier Helen Zille.
“I want to congratulate Pegas on furthering their international expansion, and thank them for making Cape Town part of their journey towards even greater success. Two months ago, in December 2016, fDI Intelligence, a division of the Financial Times, ranked Cape Town as 21st in the world on the list of cities with the best foreign direct investment strategies. Through selecting Cape Town, Pegas has also signalled great confidence in our region as a safe investment location. The City of Cape Town has a multidisciplinary team in place to assist them in cutting down red tape because this is more than a R1-billion investment, it is an investment into the lives of vulnerable residents who will soon have a brighter future as they, together with their families, are uplifted out of poverty,” said City of Cape Ton Mayor Patricia de Lille.
Minister Alan Winde said: “This investment is excellent news for jobs and growth in the Western Cape. We’ve seen significant foreign investment into our region’s greentech sector. In 2013, Hisense opened its R800-million plant in Atlantis, creating 1 000 jobs. Jinko Solar, one of the Chinese companies we engaged with during our official visit to that country in 2015, opened a photovoltaic manufacturing firm in Cape Town, which added 120 jobs. We’re actively working to turn this around, for the people that live in Atlantis, and for our region’s economy.”
“This deal is a fine example of what private public collaboration can achieve and we look forward to further collaborations that will grow the Cape economy and create jobs,” concluded Wesgro CEO Tim Harris.