Creating Industrialists, Gregory Walker – Champion: Valve and Actuator Manufacturers Cluster of South Africa (VAMCOSA)

ByTyrone
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Gregory Walker – Champion: Valve and Actuator Manufacturers Cluster of South Africa (VAMCOSA)

 

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Walker spoke on the progress being made around transformation of the valve industry and the approach that has been taken by VAMCOSA.

A key deliverable of the multiplier effects of designation and the promotion of local manufacturing is the creation of sustainable jobs. A commitment given to the dti is that, the valve industry will begin the transformation process, which to some degree is easier, said than done, considering that most valve manufacturers are white, family owned businesses.

BBBEE at an ownership level is being hampered by:

  • The finance sector – access to finance
  • No surety / collateral to secure finance
  • The attractiveness of the sector from a returns perspective (the services and financial sector yield better investment results)
  • Lack of understanding of the manufacturing business environment

There is nothing stopping industry from developing Industrialist and meeting the transformation requirements through enterprise development.

Three initiatives are in the processes of being rolled out. The first initiative, creating a new manufacturing business through off take of a product which was previously manufactured in-house, that can now be branded for opposition companies, opening new markets. The TLIU has taken on this initiative on as a case study.

The second initiative in conjunction with Eskom has seen the development of a new valve as a result of designation and a new manufacturing facility to be set up in Witbank.

The third initiative will be to repair valves in the Kwa-Zulu Natal area.

This approach will be effective in creating industrialists and new black business because; it is a hands-on approach with meaningful transfer of skills, assets and capital, for industry, by industry.