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Enhancing Local Beneficiation: A Furniture Production Case Study

Learn about an SMME injection moulding company producing furniture, toys, and housewares. Explore their manufacturing process, key input costs, and contribution to downstream beneficiation in the industry.

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Enhancing Local Beneficiation: A Furniture Production Case Study

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  1. GOLD SUN INDUSTRIESPortfolio Committee for Trade and IndustryColloquium on Beneficiation Presented by Arik Baruch, Managing Director

  2. COMPANY OVERVIEW • Injection moulding company based in Atlantis, Cape Town • SMME that is family owned • Utilise mainly PP in our production process from Sasol • Sales offices in CPT, JHB and DBN • Represented throughout SA and neighbouring countries • We supply the major retailers and independents in SA • 30% of our production is exported to neighbouring countries

  3. FACTORY

  4. OVERVIEW OF PRODUCTS • Outdoor, patio, office and kids furniture • Toys • Housewares • Storage solutions • Contract products

  5. STAGES OF MANUFACTURING • Blending of virgin raw material supplied by Sasol with locally produced additives and colorants • Injection moulding of product

  6. PRODUCTION COST Key input costs

  7. CONTRIBUTION TO DOWNSTREAM BENEFICIATION • Cutting of various profiles of steel to become chair legs • Machining profile legs to final form • Assembly and fitting of various mainly plastic as well as non plastic components to form the finished product • Warehousing and distribution of finished products • Making use of electrical and mechanical contractors

  8. CAPITAL INVESTMENT & LABOUR REQUIREMENTS • Machinery and auxiliary equipment • Moulds • Factory building and warehouses • Skilled plastic technologists and engineers • Toolmakers • Semi-skilled labour

  9. CRITICAL FACTORS FOR LOCAL BENEFICIATION • Local supply and cost price of raw materials • Energy cost and supply • Availability of semi-skilled and skilled labour • Export promotion incentives • DTI incentives for capital investments • Import replacements policies • Competitive tool-making facilities in SA

  10. CRITICAL FACTORS FOR LOCAL BENEFICIATION • Design of products from conception to production • Tariff protection on finished product

  11. CRITICAL FACTORS FOR GLOBAL COMPETITIVENESS • High cost of local and regional product distribution due to lack of infrastructure • Most of the local factors already mentioned apply globally

  12. THANK YOU

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