By Mercury reporter
News of the establishment of a R1.2 billion plant by a partnership between Hans Merensky and the Spanish-based Finsa group at Kokstad has been greeted with jubilation by the Mayor of the Greater Kokstad Municipality, Mbulelo Sithole.
Sithole said on Tuesday that there was great excitement about the creation of direct and indirect jobs that the project would bring. "We are overwhelmed, so honoured and very happy."
He said the plant would not only improve the economy of Kokstad but that of surrounding areas too.
Sithole said getting the plant approved, and negotiations between the municipality and the investors had gone smoothly. His only concern was a lack of accommodation in the area.
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"We need more accommodation, but hopefully this will now trigger the building of more houses," he said.
Work on the hi-tech plywood plant begins with a sod-turning ceremony at the construction site on Wednesday, when the civil and bulk earthworks contractors start work.
Known as HM Kokstad, the plant will boast state-of-the-art plywood processing technology previously unknown in the country.
Piet van Zyl, Executive Manager at Hans Merensky, said that locals were hailing this as the "best investment to happen in Kokstad in the last 20 years".
He said Hans Merensky Holdings Ltd had secured an equal partnership with Finsa to finance construction and to run the plant.
"Development on HM Kokstad will span four phases, which reach completion in 2010 and will create approximately 600 permanent jobs," Van Zyl said.
"Approximately 23 000m3 of plywood is expected to be produced a year.
"The plant will be in operation by March 2007. Phase two of the project involves the establishment of a bio-energy plant, which will consume bio-waste including forest waste, pine bark and sawdust, and convert it to electrical power.
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