R67m sanitary towel plant for East London
12 February 2020 | Web Article Number: ME202017860
A R67-million high-tech sanitary towel manufacturing plant is on the cards for East London, thanks to a deal struck between local sanitary towel distributor Ntombam Sanitary Towels and Clothing and South Korean outfit M.view Global.
The Eastern Cape Development Corporation (ECDC) initiated and helped co-ordinate the agreement.
According to M.view Global general manager for South Africa Min Lee, the 8000 to 9000 square metre facility is earmarked for the East London Industrial Development Zone (IDZ).
The plant which will be built on 12 000 square metres is expected to begin operations in June 2021. M.view Global will contribute manufacturing equipment worth R24 million as part of the deal.
Lee made the remarks at the launch of the ECDC’s sanitary towel distribution drive at three schools in Duncan Village, Ndevana and Mooiplaas recently.
M.view Global donated 100 000 sanitary towels through ECDC which will be distributed to selected schools across the province.
“East London is an ideal location because of its IDZ and port facilities which will aid exports of the product. The plan is to initially target 10% of the products for the export market. Already, there is interest from four Southern African countries to import Yamanina’s products. The plant is expected to create 76 full-time jobs,” said Lee.
“This includes skilling local labour for the plant. We are very experienced in this space. We already run manufacturing plants in South Korea and Paraguay. At the East London factory we are looking at running two production lines which will produce medium and large sized sanitary towels. This should translate to 288 000 pieces of sanitary towels on each line per day or 576 000 on both lines per day.”
He said the deal between Ntombam and M.view Global materialised after ECDC met with the Korean Trade and investment Agency (Kotra) in Botswana in 2018 where Kotra indicated that a South Korean sanitary towel manufacturer was interested in setting up in South Africa.
M.view Global indicated that they would like to partner with a local company already operating in the space which resulted in the partnership with Ntombam. This resulted in a fact-finding mission to South Korea in August 2019, which included Ntombam, to see the configurations and scale of the operations to further advance the discussions around the establishment of the plant in the Eastern Cape.
“The companies have formed an operating company called Yamanina which will own the manufacturing plant. It will be 70% owned by Ntombam and 30% owned by M.view Global. A business plan has been finalised and the local partner Ntombam is raising the required capital,” said Lee.
ECDC chief executive officer Ndzondelelo Dlulane said the deal would help boost local manufacturing, skills development and transfers, and position the Eastern Cape as a manufacturing hub.
“ECDC welcomes the deal struck between M.view Global and Ntombam as it ticks all the boxes in terms of the corporation’s investment promotion approach. The development of a partnership with a local company is critical in building the manufacturing capacity of local enterprises and for skills development in the sector in general,” Dlulane said.