P&G to build $134m facility in South Africa

US-based consumer goods company Procter&Gamble (P&G) is planning to invest ZAR1.6bn ($134m) in South Africa to build a multi-category manufacturing plant for both the local and export markets.

Construction of the new plant, which will be one of the largest P&G facilities in Europe, the Middle East and Africa, is expected to start in 2014, and the production is expected to commence in 2016 or early 2017.

The company in 2009 invested ZAR500m ($41.93m) in a manufacturing plant for Pampers nappies in Kempton Park, Johannesburg.

P&G global business units vice-chairman Dimitri Panayotopoulos said the firm is planning to make South Africa its manufacturing hub for the markets of Southern and East Africa.

"Our global strategy is to maintain our strong momentum in developing markets. Africa, in general, and South Africa, in particular, are of key importance to us," added Panayotopoulos.

"As in all developing markets, our business here in Africa will remain focused on brands that improve health, hygiene and household care, as well as substantial social investment programmes that uplift underprivileged families and communities."

P&G claims that the new facility will meet its global commitment of leadership in energy and environmental design (LEED) certification.

The new plant will be built on a greenfield site which the company will acquire in the near future and will become one of the largest P&G facilities in Europe, Middle East and Africa.

South Africa trade and industry minister Rob Davies said the P&G announcement to set up a new facility is a further example of confidence by the company in the future of South Africa.

"Since P&G entered the South African market, it has contributed to creating environmentally and socially responsible economic growth and, in particular, more South African jobs," Davies added.

"Such investment clearly demonstrates the confidence in South Africa as an investment destination and South Africa as the gateway into the African continent."

Image: P&G with the new manufacturing plant in South Africa is aiming to make the country its manufacturing hub for southern and eastern Africa Photo: Derek Jensen (Tysto).