Manufacturing

Globally, an estimated one billion tyres reach the end of their useful life every year. (Image source: Adobe Stock)

The South African Tyre Manufacturers Conference (SATMC) has been appointed to the Waste Tyre Management Industry Advisory Committee to help support the Waste Tyre Management Plan that was approved by the cabinet in March this year

The national strategy seeks to address several challenges faced by the waste tyre sector, including limited local processing capacity, storage depot limitations, and logistical constraints. It is being driven by the Ministry of Forestry, Fisheries and the Environment, and emphasises collaboration between the public and private sectors while encouraging the participation of new SMMEs across the waste tyre value chain. It plans to progressively divert new waste tyres from storage while simultaneously processing larger portions of stockpiles to ultimately achieve 100% waste tyre coverage.

To attain this goal, Dion George, Minister of Forestry, Fisheries and the Environment, has recruited the help of the SATMC, announcing their appointment in July. Other committee representation includes the Retail Motor Industry (RMI); the Tyre, Equipment, Parts Association (TEPA); Tyre Recycling Industry Association of South Africa; the Recycling Association of South Africa and the Waste Tyre Management Forum, as well as the Black Business Council (BBC), Business Unity South Africa (BUSA); Minerals Council South Africa, the Department of Science and Innovation; and Department of Trade, Industry and Competition.

SATMC has now issued a statement welcoming their inclusion, with managing executive Nduduzo Chala commenting, “As the SATMC, we look forward to working closely with all committee representatives and the broader industry to drive forward the objectives of the Waste Tyre Management Plan, which include expanding waste tyre processing capacity, developing monitoring systems, and supporting municipal waste management initiatives. This crucial environmental initiative deserves the full support of the entire tyre industry value chain to reduce the negative environmental impacts of waste tyres.”

Chala further expressed enthusiasm for the establishment of three dedicated waste tyre management regions nationwide, each involving multiple organisations working together to meet this pressing environmental challenge. Region 1 covers the Northern Cape, Eastern Cape, Western Cape and southern Free State; Region 2 covers KwaZulu Natal, Mpumalanga and Limpopo; and Region 3 covers Gauteng, North-West Province and northern Free State.

Tyre repurposing

Bringing the SATMC on board brings its experience in actively identifying and leveraging opportunities for repurposing waste tyres. It is committed to ensuring that what is produced by tyre manufacturers is reused effectively.

“We are currently on a research and fact-finding mission to explore potential uses for waste tyre products. This is part of a broader strategy to integrate waste tyres into the economy sustainably. What we would like to see is for these waste products to be converted into usable material, for example, tyre crumb used in road infrastructure or waste tyres used in the construction of schools and other social projects,” remarked Chala.

Another crucial initiative is the tyre mutilation initiative, which ensures that dealers mutilate tyres correctly to prevent them from re-entering the market. The SATMC developed a standard for this process years ago, which included guidelines and posters for dealers to ensure compliance and awareness.

“Prior to the finalisation of the Plan, the SATMC had long been advocating for a process that would cater to the processing of end-of-life tyres. We continue working closely with TIASA, TEPA, the Waste Management Bureau, and the government to ensure that steps are taken to drive improvements and sustainability in both collection and processing of tyre waste,” Chala added.

Increased regulation

Chala also spotlighted the need for better regulation of part-worn or second-hand tyres which pose safety risks for road commuters and add to the burden of incorrect disposal of waste tyres.

“We urge the government to prioritise the regulation of second-hand tyres as part of its overall road safety strategy,” he surmised. “This will help to prevent the sale of unsafe tyres and protect the lives of South African motorists.”

Chala concluded by noting that the SATMC’s technical committee intends to conduct a new study to investigate the prevalence of illegal second-hand tyres in the market. Research in 2020 from the organisation suggested that 63% of tyres sampled were deemed illegal and current estimates suggest there now between 1mn and 1.5mn illegal tyres circulating in the country.

At the show in Johannesburg, companies and investors are encouraged to be part of Africa’s industrial renaissance. (Image source: Manufacturing Indaba)

According to the organisers of the upcoming Manufacturing Indaba Conference and Exhibition, running from 22-23 October 2024 in Johannesburg, Africa is rapidly positioning itself as a key player in the global manufacturing landscape

The continent, is offering unrivalled opportunities for growth and investment with manufacturing contributing more than 10.5% to Africa’s GDP. Led by nations such as South Africa, Nigeria and Egypt, there are significant strides being made in industries such as automotive, textiles and consumer goods. Moreover, the organisers noted that the increasing focus on industrialisation (prioritised by most nations), coupled with favourable policies and emerging trade agreement such as the African Continental Free Trade Area (AfCFTA) is creating an “ideal” environment for businesses seeking to expand their global footprint.

A manufacturing revolution

These market dynamics are spurring interest and excitement for the industry so that it now sits on the cusp of a manufacturing revolution.

Another facet at the forefront of this change are the emergence of special economic zones (SEZs). The Hawassa Industiral Park in Ethiopia, for instance, has become “a magnet” for foreign direct investment the organisers have noted. Specifically, the textiles and apparel industries have flourished around the zone.

This is a familiar theme across the continent, with other success stories including the growth of the automotive sectors, particularly in Morocco and South Africa. These two countries now nearly produce a combined one million vehicles a year.

There is also a general shift towards sustainable practices, in line with the global appetite for reducing emissions. The organisers have expressed that investments in renewable energy and green manufacturing are gaining momentum across the continent with a number of leading initiatives to reduce the industry’s carbon footprint. This is further making the continent an attractive destination for investors alongside the readily available workforce emerging from Africa’s rapidly growing population.

With the continent on the right road to become the next global manufacturing powerhouse, stakeholders are being encouraged to participate in the Manufacturing Indaba Conference and Exhibition in South Africa. Gathering industry leaders, policymakers and investors to discuss the future of manufacturing, it will serve as a platform for attendees to be part of the industrial renaissance currently underway.

Through the acquisition, Mauser is extending its existing production capacities and footprint in South Africa. (Image source: Adobe Stock)

Mauser Packaging Solutions, a global industrial packaging producer and provider of solutions and services, has acquired a plastic drum business in South Africa in order to extend its product offering and expand capacities to meeting growing regional demand

The business, previously owned by Nampak Products and Eliptotime PTY, specialises in manufacturing, selling and supplying plastic drums, including large rigid plastic drums in Pinetown, Kwa-Zulu Natal.

Peter Lucht, Mauser’s general manager in South Africa, commented, “We are proud to further expand our plastic capacity and portfolio. This acquisition enables us to offer our customers even greater security of supply and an enhanced portfolio of products.”

The new site produces UN-certified, tight-head and open-head plastic drums for use in the petrochemical, lubricant, ethanol, chemical, coatings, mining, and food industries. The facility holds ISO 9001 and ISO 14001 certifications and is able to consistently deliver high-quality packaging solutions, including Mauser’s Infinity Series product range.

The Infinity Series of products provides brands with sustainable packaging solutions that meet strict performance requirements while incorporating post-consumer resin (PCR), reducing carbon emissions, and diverting waste from landfills. Mauser’s Recolene PCR material is manufactured in-house from empty industrial packaging that has been collected through the company’s Recover Syst-M programme and reached the end of its usable life.

“This investment underscores our ongoing commitment to expanding our presence in this region and growing with our customers by delivering sustainable packaging solutions with unparalleled quality and customer service,” said Michael Steubing, president of Mauser’s international packaging business unit.

The initiative was unveiled at a meeting at the UIA head office. (Image source: UIA)

The Uganda Investment Authority (UIA) has revealed a new initiative to encourage traders in Kampala’s business hub, known as Kikuubo, to transition from trading in imported products to manufacturing them locally

Named ‘Transitioning Kikuubo Traders to Manufacturing’, the initiative aims to promote import substation to enable traders who have traditionally traded in imported products to seize import substitution opportunities and incentives that will come with this (such as zero tax rates, free industrial park land, tax holidays, and others).

The initiative was unveiled by Robert Mukiza, director general of the UIA, during a meeting at the organisation’s head office. Traders from Kikuubo and officials from the Global Competitiveness Initiative (GCI) and the Presidential Advisory Committee on Exports and Industrial Development (PACEID) were invited to learn more.

At the meeting, Mukiza explained that a special desk has been created under the Domestic Investment Division, full of work plans, targets, and timelines to ensure a faster transition of business people from trading to manufacturing. He added that traders (especially those in Kikuubo) have deeper knowledge of the business environment, and supply chains and have sizeable cash flow, key ingredients in the transition to local manufacturing of products the country imports.

“Domestic investors are crucial to Uganda’s industrialisation that is why it is UIA’s special mission to see more traders transition to manufacture of products they have been importing,” remarked Mukiza, adding that once many traders successfully transition to manufacturing, more will follow suit, hence widening the domestic investment base.

To fasten the trading-to-manufacturing transition, Mukiza noted that UIA is acquiring additional land in Namanve Industrial Park specifically to cater to the Kikuubo traders interested in going for manufacturing, adding that land is also available in other industrial parks across Uganda.
“If you are targeting markets like the Democratic Republic of Congo or South Sudan, you don’t need to set up your factory in Greater Kampala but could go to industrial parks in Nebbi, Arua, or Kisoro,” he emphasised.

Support for local business

Joshua Kassibo, a representative of the traders, said for a long time they had perceived UIA as favouring foreign investors but through sustained engagements, they are now enlightened about investment opportunities and incentives they have been missing.

“We previously thought investors were only foreigners, but now we know we can transition to manufacturing, and we are ready. The main issue is how to work with UIA to enable our transition to processing and manufacturing,” said Kassibo.

Meanwhile, the chairperson of the GCI, Daudi Migereko, urged Ugandans to look at what to produce, process, manufacture, and export competitively. “If you have been trading in a product for many years, it is time to start manufacturing it locally. Let us go with the new wave of import substitution,” he surmised.