Electronics factory boost for W Cape

13 March 2013

South African technology company Tellumat has opened a fully modernised electronics factory in Atlantis north of Cape Town, following a multi-million rand investment supported by the Department of Trade and Industry (DTI) and the Industrial Development Corporation.

Speaking at the opening event on Tuesday, Trade and Industry Minister Rob Davies reiterated the government’s commitment to support companies that contribute to the South African economy and job creation.

“This state-of-the-art facility that we see today was made possible amongst others by the manufacturing investment grant of R2.64-million for a capital outlay of R12-million to resuscitate the old Tedelex factory,” Davies said.

“The company has also benefited from an Industrial Development Corporation loan of R8.2-million for surface mounting technology expansion for this facility.”

According to Tellumat CEO Rasheed Hargey, the factory was modernised with new production equipment in 2012, enabling it to produce electronics for brands such as Sony, Mecer and HiSense.

Tellumat acquired the assets of the old Tedelex television factory in Atlantis in 2010, and continued to operate from the old facility until the end of last year, when it moved into the new facility.

Hargey said the facility represented a significant investment in South Africa’s manufacturing sector and would be a major boost for the development of Atlantis.

“We currently have a staff complement of 116, and we wish to have more as we grow as a company,” Hargey said.

“The factory is an illustrative example of co-operation between the government and business partners to attract private sector investment through an enabling environment and industry-supporting incentives.”

Western Cape Premier Helen Zille, also present at Tuesday’s opening, said it was wonderful to see South Africans on the cutting edge of technology, where the future of job creation lay in the country.

“Technology is an important field with the potential to improve education and government and generally to transform the way we live,” Zille said. “We must make sure that government steps up to the plate to assist business to take advantage of strong and growing export markets in Africa, which the Western Cape is well poised to do.”

According to the DTI, the electrotechnical sector accounts for at least 12.5% of South Africa’s gross domestic product (GDP).

SAinfo reporter