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Publish Date : 10-Sep-2016

The R200 million AVK Holdings manufacturing facility which was officially launched at the companys Alberton, Gauteng premises today will deepen localisation by supporting the growth of downstream industries including small and medium enterprises through the additional procurement of related goods and services. This was said by the Deputy Director-General of Incentives at the Department of Trade and Industry (the dti), Ms Malebo Mabitje-Thompson.

This investment through its forward linkages will deepen localisation by supporting the growth of downstream industries including small and medium enterprises through the additional procurement of related goods and services. The investment is also strategic and important in terms of our Industrial Policy Action Plan (IPAP), building productive capacity towards full-scale industrialisation. The opening of this facility also marks an important milestone for the government and industry in our quest to convert the countrys comparative advantage into a competitive advantage, said Mabitje-Thompson.

She added that the valve and actuator sectors are two of the key priority sectors in IPAP and continued to play a pivotal role in manufacturing because they represent a significantly large Opex and Capex spend of State-Owned Entities, municipalities and water boards.

The increase in government infrastructure projects in the water, wastewater and power sectors will contribute to sustaining the valve market and benefit companies such as AVK. IPAP calls for greater enhancement of public procurement. This investment ticks all the boxes of our industrial policy. It has been possible through government policy and IPAP tools in leveraging public procurement and the designation of valves and localisation thereof, added Mabitje-Thompson.

The state-of-the-art valve manufacturing facility with improved engineering process, will also include a training academy that will provide skills development to 1 500 workers to make the production process efficient. 114 jobs, 84 of whom are artisans, have been created.

Products manufactured in the new facility will be used in the water, wastewater, gas, mining, steel, pulp and paper, as well as chemical industries.

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