R180m upgrade for appliance factory

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Enoch Khuzwayo at Defy's Ladysmith appliances factory, are eagerly awaiting the factorys R180m upgrade because it will mean extra shifts for them and new jobs for others.

The Ladysmith factory of appliance manufacturing giant Defy is to undergo a massive R180 million upgrade, expected to start next month.

The upgrade plans, which are set to be completed early next year, were revealed to The Mercury last week.

The Defy factory, which began business in the 1980s, produces 450 000 appliance units a year.

“After the upgrade the factory will produce close to 1.5 million appliance units a year and will also allow Defy to export to Europe – and will probably create more jobs,” the factory’s quality manager, Lindsey Haggemann, said.

The Ladysmith factory employs 932 staff members.

Defy has three manufacturing plants in KwaZulu-Natal, where it was founded more than 100 years ago.

Its headquarters is based in Quality Street, Jacobs, in the South Durban Industrial Basin.

Vishan Jugdawooh, Defy’s quality assurance manager, who took The Mercury on a tour of the Ladysmith operation, said the factory’s “entire line” would be replaced with “brand-new” equipment.

“This will improve productivity. The factory will be able to produce a new product that’s energy efficient and be internationally competitive,” he said.

“There is a strong possibility that we will create more jobs for people. Usually we run two shifts, but during and after the upgrade we will have to do regular third shifts, which means more people will be needed.

“Defy currently exports to southern African countries like Namibia, Botswana and Zambia… After the upgrade, the factory will be more efficient and we will be exporting to Europe and tackling the international market,” said Jugdawooh.

Spokesman Mark Hobbs said detailed information regarding unit production, staffing levels, detailed layouts and graphics could not be released as it was “competitive” information.

“We have plans to upgrade the facilities to world-class standards, which will allow Defy to increase its product offerings to both the local and export markets,” said Hobbs.

“The upgrade was a result of the $230m (about R2 billion) July 2011 acquisition of Defy by the Turkish consumer electronics firm Arcelik.

“The investment has enabled Defy to be more competitive in the white appliance manufacturing market... (and) capable of matching any world standard,” he said.

“It is difficult to put an absolute figure on job creation… The upgrade is not intended at any stage to result in job losses, rather to provide a platform to locally produce world-class goods.

“The upgrade should be completed early in 2013.”