PEGAS NONWOVENS INVESTS R1.3 BILLION IN THE WESTERN CAPE

1 March 2017

Today, Premier Helen Zille, Minister Alan Winde and Cape Town Mayor, Patricia De Lille welcomed Pegas Nonwovens to the Western Cape.

Pegas Nonwovens is the largest producer of spunmelt nonwovens in Europe, the Middle East and Africa – with  570 employees globally and two major production facilities in the Czech Republic and Egypt.

Earlier, the company announced it would be establishing another facility in Atlantis, Cape Town – which will see an investment of at least R1.3 billion into the Western Cape, and the creation of 200 direct jobs. The Western Cape Government’s economic agency, Wesgro played a crucial role in assisting Pegas Nonwovens to set up in the province.

This latest R1.3 billion is the largest single investment facilitated by Wesgro since 2011.

Atlantis is envisioned as a Special Economic Zone (SEZ) to support manufacturing mainly for the renewable energy sector and, in particular, independent power producers in the government’s Renewable Energy Independent Power Producers Programme (REIPPP).

Other major companies operational in Atlantis include Gestamp Renewable Industries, a Spanish wind tower manufacturer, and electronics manufacturer Hisense, among others.

Premier Helen Zille said: “Major investments like Pegas are a vote of confidence in the capable state we are building, backed by sound policies for ease of doing business and our vision of an energy secure economy”.

“Our goal is to encourage investment with the least possible red tape. We are launching the Cape Investor centre later this year as a one-stop-shop for investors to complete local, provincial and national regulatory processes, under the professional guidance of a single relationship manager. We are also targeting R1 billion in economic savings and benefits by 2019 through our Red Tape Reduction Unit,” said Premier Zille.

Minister Alan Winde said: “This investment is excellent news for jobs and growth in the Western Cape. We’ve seen significant foreign investment into our region’s greentech sector. In 2013, Hisense opened its R800m plant in Atlantis, creating 1 000 jobs. Jinko Solar, one of the Chinese companies we engaged with during our official visit to that country in 2015, opened a photovoltaic manufacturing firm in Cape Town, which added 120 jobs.

“Both oil and gas and the green economy are key focus sectors for the Western Cape Government and we are working hard to create an investor-friendly environment that attracts global players to our shores. These investments create jobs for our residents and transfer knowledge to the local sector. They are also crucial in bringing in much needed foreign exchange into our economy. Atlantis has long been a depressed area with high unemployment. We're actively working to turn this around, for the people that live in Atlantis, and for our region's economy.”

Mayor Patricia De Lille said: “I want to congratulate Pegas on furthering their international expansion, and thank them for making Cape Town part of their journey towards even greater success. Two months ago, in December 2016, FDI Intelligence, a division of the Financial Times, ranked Cape Town as 21st in the world on the list of cities with the best foreign direct investment strategies”.

“Through selecting Cape Town, Pegas has also signalled great confidence in our region as a safe investment location. The City of Cape Town has a multidisciplinary team in place to assist them in cutting down red tape because this is more than a R1 billion investment, it is an investment into the lives of vulnerable residents who will soon have a brighter future as they, together with their families, are uplifted out of poverty”.

The Pegas Nonwoven Atlantis facility will manufacture non-woven, polypropylene and polyethylene-based textiles, used in disposable hygiene products such as baby diapers, adult incontinence and feminine hygiene products, among others.

Pegas Nonwoven will be the primary supplier of these materials to Cape Town based Kimberly Clarke and other companies including Proctor and Gamble.

PEGAS Nonwovens CEO Frantiçek Rezac said, “The Western Cape was a natural choice for us when considering our African expansion. Its world class infrastructure and access to the rest of the continent provided us with a profitable opportunity we could not pass on.”

 “This deal is a fine example of what private public collaboration can achieve and we look forward to further collaborations that will grow the Cape economy and create jobs,” said Wesgro CEO Tim Harris.

Statement issued by the Office of the Western Cape Premier, 2 March 2017