The National Empowerment Fund (NEF) and the Department of Trade, Industry and Competition (the dtic) has unveiled Sino Africa Gases, a new food-grade Liquid Carbon Dioxide (LCO2) manufacturing plant in Newcastle.
This development is a milestone for South Africa’s industrial gases sector, aimed at boosting local manufacturing, creating jobs, and reducing imports.
Sino Africa Gases, a fully black-owned start-up, has secured R36.5 million from the NEF and an additional R24 million in grant funding through the dtic’s Black Industrialists Scheme (BIS).
Acting Deputy Director-General of Incentives Susan Mangole, said: “this initiative not only promotes local manufacturing and ownership but also supports import substitution in this critical sector and job creation.”
With a production capacity of 1,500 kg per hour, the plant is expected to serve various industries, particularly the beverage sector, with Puregas as its primary offtaker, said founders Sibusiso Sibisi and Sipho Magudulela.
The initiative has already created 110 jobs, including 21 permanent positions. Magudulela acknowledged the support from NEF and dtic in realising the company’s vision.
“We are committed to delivering innovative solutions that serve local markets and have the potential for export in the SADC region,” he said.
The NEF and the dtic plan to continue their support to ensure the project's success, reinforcing their commitment to empowering black industrialists and driving economic growth.
The Mercury