KAP expresses confidence and invests R2 billion
KAP Industrial Holdings Limited announced a R2 billion investment in their PG Bison timber division at the recent South African Investment Conference “This investment is on the back of improving market conditions and our long-term confidence in the sector,” says KAP CEO, Gary Chaplin, “These expansion projects, employing the latest technology, will significantly improve PG Bison’s global competitiveness and position the company for further growth in both local and export markets.”
The R2 billion investment includes a major expansion of their current particleboard line in eMkhondo (Piet Retief) and an investment into an additional medium density fibreboard (MDF) plant at the same location. The products produced by these plants are used to make household furniture items, like kitchen cupboards, for which current and projected demand is strong. “These are long-term investments that will create a unique opportunity to strengthen our position as the leading board manufacturer” says Chaplin.
“This investment is aligned with President Ramaphosa’s vision and commitment to grow domestic manufacturing as part of his economic recovery plan.” says Chaplin. “Our planned investments will contribute significantly to the creation of direct and indirect jobs along the entire value chain, which we believe is vitally important to the future of our country. We remain optimistic about the future” says Chaplin.
KAP have indicated they will fund these expansion projects from cash generated from their existing operations.
In addition to its PG Bison timber business, KAP also has an automotive component manufacturing business, an integrated bedding manufacturing business operating under the Restonic brand, and a polymer manufacturing company, Safripol. KAP also operates in the logistics industry under the Unitrans brand.
The expansion of the particleboard line will be completed in December 2021 and the new MDF line will be commissioned in July 2023. The latter will increase PG Bison’s MDF capacity from 400 m3 per day to 1200 m3 per day.