»
May 14, 2008:
Eastern Cape government has recently opened a R1,3bn Steinhoff PG Bison particle board factory, which will double its capacity.
The factory, which follows Steinhoff's acquisition of a 67% stake in the North Eastern Cape Forests plantations, started production in December and has been on a steady ramp-up towards full production.
According to the Office of the Premier the factory is situated on 36 hectares of the 64 hectare site with future timber beneficiation processes lined up.
Eastern Cape Premier Nosimo Balindlela said the new factory is a result of close co-operation between government and private sector.
"Government has learnt that these investments are critical contributory factors that persuade investors like Steinhoff-PG Bison to take the investment decisions they do."
The premier said the provincial government and its parastatals have already spent R800m on public infrastructure to facilitate the development of a forestry cluster in the north eastern part of the province.
These included the Kei Rail project with an investment of R180m, the Ugie-Langeni road investment of R400m and the Maclear-Mount Fletcher road project at a cost of R120m.
A further R80m has been spent on new Eskom power lines, water reticulation, waste management and new municipal infrastructure in Ugie and surrounding areas. – Luyanda Makapela, BuaNews
