Patel welcomes R50m investment in rail composite manufacturing plant
JOHANNESBURG - Economic development, trade and industry minister Ebrahim Patel on Friday welcomed a R50 million investment by BFG Africa Rail into an advanced manufacturing facility in Germiston, Gauteng.
BFG Africa is a subsidiary of a multinational company in Bahrain which specialises in making composite products and is one of the top five global suppliers of advanced composite material.
The company has set up BFG Africa Rail to supply composite products to the state Passenger Rail Agency of South Africa (PRASA).
In a statement, Patel said the investment would result in a state-of-the-art composite manufacturing facility which would boost improved engineering processes using advanced technologies.
The advanced composite products coming out of the new factory will find applications in the rail, renewable, defence and other sectors.
The scale of the investment will enable the company to achieve production capacity to meet South African requirements as well as exports into the sub-Saharan Africa market. The import substitution will lead to 76 percent of the components being locally built.
BFG Africa said the investment would also create new jobs, resulting in a full staff complement of 120 employees by the end of December.
Patel said the launch affirmed the improving investment climate in South Africa and would contribute towards President Cyril Ramaphosa's investment mobilisation drive.
- African News Agency (ANA)