The proposed project will use locally-sourced kaolinite and nationally-sourced minerals, along with imported technology, to produce 3-million square metres per annum of wall and floor tiles for consumption in KwaZulu-Natal and possible export to other markets in Southern Africa.
There is a market in South Africa and surrounding countries for about 48- to 50-million square metres a year of tiles. This market is growing at the rate of housing expansion - that is to say, quickly. KwaZulu-Natal is reliant on the importation of tiles, whilst being in possession of materials such as kaolin, which could be suitable for the local manufacture of such tiles. Producing tiles locally would cut costs on import and create employment for local communities.
The tile production facility would be best located so as to take advantage of technology support, whilst not being too distant from the clay (kaolin) deposits of Inanda and Ndewedwe.
The capital expenditure anticipated for a 3-million square metre per annum tile plant is R401-million. The anticipated operating cost of the clinker grinding plant will provide an operating margin of 14% of sales, equivalent to a net profit of 13.7% of sales revenue. The project will employ some 158 people at an average total cost, per person, of R298 000 per annum.
For more information contact TIKZN
Project Promoter: Nkosana Sifumba, General Manager: Knowledge Management
Tel: +27 31 368 9600
Cell: +27 79 699 4948