Although relatively small in comparison to provinces like Gauteng, the chemical sector in the Eastern Cape is home to one of the largest producer of generic drugs in South Africa, Johnson and Johnson (J&J). In addition to this, Straits Chemicals, a Singapore-owned company, have committed to the establishment of a chlorine plant in the Coega IDZ in the Port Elizabeth area. They have also already secured markets for the salt and desalinated water bi-products.
The South African Chemical Sector Development Strategy envisages investment opportunities in the following areas:
- Manufacture of basic chemicals and nitrogen compounds such as metal-based chemicals, industrial gasses and acids;
- Plastics conversion;
- Production of consumer-formulated chemicals such as paints, soaps and other chemical products; and
- Bulk-formulated chemicals such as fertilisers.
The Coega IDZ has set aside a significant portion of land to accommodate investors that are interested in entering the chemical and chemical beneficiation industry in the Eastern Cape.
