THE NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
988. Mr G G Hill-Lewis (DA) to ask the Minister of Trade and Industry:
(1) Whether, with reference to the location of a Samsung television
production facility at the Dube Trade Port in Durban, KwaZulu-Natal,
his permission was obtained to transfer the operator permits to
another person; if not, why not; if so,
(2) whether he considered the (a) extent to which the applicantâs
business achieves the purpose of special economic zones set out in
the Act and (b) implications of the application for local
manufacturers of the same product;
(3) whether he consulted with affected local manufacturers before
agreeing to the production facility; if not, why not; if so, what are
the relevant details? NW1141E
RESPONSE TO PQ 988
1) the dti received an application from the Dube Trade Port Corporation
(DTPC) on 12 March 2014, for the designation of an Industrial
Development (IDZ) at Dube Trade Zone, King Shaka International
Airport, and for the granting of an Operator Permit. DTP is a Schedule
3C corporation that is wholly-owned by the KwaZulu-Natal (KZN)
Provincial Government through the Department of Economic Development
and Tourism (DEDAT). The Manufacturing Development Board considered
the proposal and recommended that the Minister of Trade and Industry
designate the proposed area and grant an operator permit to Dube Trade
Port Corporation (DTPC). Only the Dube Trade Port Corporation has been
granted an operator permit as an Industrial Development Zone.
2) Samsungâs investment into South Africa is a phased approach. The
television plant to be established at Dube Trade Port is phase 1 of
Samsung investment and the company has positioned South Africa as part
of its global manufacturing operations. The aim of Samsung is to
establish a manufacturing hub in South Africa for the manufacture of
Samsung products for the African market hence aligning to the broad
objectives of the SEZ model i.e. value addition, technology transfer,
manufacturing and export. the dti has established an internal task
team with the Department of Economic Development (EDD) to address the
issues raised by local manufacturers.
3) Regarding local manufacturers of the same product; Vektronics, Anyview
Technology and Altech UEC were engaged by Samsung as contract
manufacturers or suppliers of Samsung products; a strategy utilised by
many OEMâs to enter markets before they embark on establishing their
own manufacturing facilities. the dti has engaged Samsung in terms of
extending the local manufacturers contract and these discussions are
ongoing. the dti will continue to engage local companies to develop a
long term strategy for the electronics industry.