The Industrial Development Corporation (IDC) has a dedicated unit to help the sector grow and unit head, Lizeka Matshekga, explains that they look at the entire value chain.

‘‘Timber supply is probably our biggest focus, really due to the Industrial Policy Action Plan (Ipap) strategy and the fact that plantations do generate more jobs than perhaps a packaging entity, so that’s our first focus.

‘‘The second one is on pulp and paper and packaging but again there we probably have split our focus to say we’re supporting projects that bring in new products into the pulp sector …

‘‘We also look at technology upgrades within the pulp sector, as we want to support competitiveness in South Africa.

She adds that in the saw-milling sector, the IDC plays a role of supporting efficiency improvements, which focuses on both skills development and technology upgrades.

Another critical area for the IDC is the value-adding industries such as biomass projects: ‘‘The IDC has invested in two projects … We’ve learnt a lot … (and) the unit is looking at different alternatives; what model can we adopt to drive the biomass  industry in South Africa.

We are in discussions with Eskom and Safcoal to co-partner with us to look at alternatives. But that is really not a medium-term approach; it’s probably in the long term.

‘‘The other value-adding example is bamboo. We’re looking at a project now, it’s currently at feasibility, just perhaps close to a bankable  feasibility stage, on how can we produce local bamboo products,’’ she says adding that the focus is on flooring and bamboo boards.

The unit is also interested in MDF products, as well as dissolved cellulose.

Matshekga explains that dissolved cellulose is a by-product  from the eucalyptus tree which is often mistaken for plastic.

‘‘Currently this chemical is exported outside the country and it comes back as a value-added product. It is used in toothpaste, packaging, pens – even in the textile industry.

We want to obviously develop projects that will produce the chemical and also add value to it.

In addition, the IDC looks at more traditional sectors such as office furniture manufacturing which is in line with the government’s new Preferential Procurement Public Framework Act.

Lastly, the unit also looks at packaging and paper applications.
 

Source: The citizen

Posted and edited by Riona, Hanbao News Department

Contact: rionach@cltimber.com