CEREBOS announces R85-million relocation and expansion into the CoegalDZ

A local investor, CEREBOS Ltd, today announced a R85-million expansion and relocation project into the Coega Industrial Development Zone, which will see the company remaining in the Nelson Mandela Metro, retaining and even increasing much needed jobs for the local communities.

The expansion into the new plant will see CEREBOS using innovative new technology that has never been used in Sub-Saharan Africa to produce high purity Sodium Chloride known as pure vacuum dried salt (PVD), which is of a better quality and is produced through an environmentally friendlier process.

The new facilities in the Coega IDZ will include state of the art technology with a production capacity of 45, 000 MTPY base on 7500 operating hours per annum.

According to CEREBOS Ltd’s Managing Director, Len Chandler, engineering work and an Environmental Impact Assessment are currently underway for the installation of the six-ton-per-hour evaporation and crystallization plant.

Social economic benefits for the local communities will be given a boost with the creation of a least 100 jobs during construction in addition to the retention of the current 140 jobs in the current operations. An increase in jobs is expected as the company increases its volumes due to an increasing local and international demand for PVD salt.

Construction work of the new plant is scheduled for July. The new plant is expected to increase CEREBOS’ national and global competitiveness, while at the same time helping the company meet its local demand.

“Local demand for PVD salt exceeded our supply so we had to turn some customers down but all that will be history when the new plant is operational in. September”, said Chandler.

The choice of the Coega IDZ is mainly based on the fact that as a green-field location, it offers the company the opportunity to incorporate new technological advancement in its processes with the expansion.

The investment was made possible through a strategic partnership with the Development Bank of Southern Africa (DBSA) and Khumo Bathong Strategic Investments, a Black Economic Empowerment partner. The CDC offered a strategic location for the company’s current and future plans.

According to Chandler, the BEE acquisition makes CEREBOS the first and only salt processing company to comply and exceed BEE requirements in South Africa. “The new partner brings with it good expertise for the company and one of its members, Advocate Palesa Sedibe-Ncholo, has been appointed to the board of directors.