Upwards of R6 million a month will be injected into the local economies of Ugie and Maclear when the huge new R1,3 billion Steinhoff/PG Bison timber processing plant goes into production towards the end of next year.

Chairperson of the Ugie Chamber of Commerce, Johann Stassen, yesterday said the anticipated financial windfall is based on rough calculations on the wages and salaries the various categories of workers can reasonably expect to earn.

“We have been informed that there will by around 2000 unskilled workers, 650 skilled and 260 highly skilled workers,” Stassen said.

He added that the chamber is expecting as many as 100 new families to move into the area.

At the official announcement of the new project in Bhisho on Monday, it was disclosed that the factory would provide 3000 direct and 10000 indirect job opportunities.

“The factory will be just outside Ugie on the way to Maclear, which is just 20km away.

“Right from the very beginning the communities made it clear that should this project materialise, both towns must benefit. So really … it is a 50/50 case scenario.”

Stassen said Monday’s announcement by Premier Nosimo Balindlela that a R1,3bn deal with the German/South African timber group Steinhoff/PG Bison, had been signed and sealed had not come as much of a surprise.

“There has been talk of this for a long time ... but, of course we are pleased that the whole enterprise now has official sanctioning.

“The fact that work has actually started on the site of the factory also shows that a long-time dream is being realised.”

The business leader says the idea of promoting forestation and the development of a timber industry in the area was first mooted in the mid-1980s after the government had closed down Ugie’s major industry, the MTR Smit Children’s Home.

“The home had for decades been a haven for as many as 600 children at a time. The town and the community revolved around it. Suddenly they were gone and 30 teachers and their families left town. It was devastating.”

Stassen said shortly after the home closed a few of the younger business people in the community got together to explore various options and avenues to revive Ugie’s flagging fortunes.

“We learnt that a government survey showed our region here in the north-eastern Cape to be the last remaining area well-suited to forestation (in the country).

“We pursued that line ... arranged a forestry day and invited all the movers and shakers to attend. That’s how Anglo-American together with Mondi Paper got involved.

“Around 80000 hectares of farmland was bought out to plant forests ...

“But it takes time to plant trees and for timber to grow ... and there was a gap in which matters just seemed to come to a halt. Now it appears to be all systems go.”

Stassen confirmed that there was growing interest in property in both Ugie and Maclear.

“The interest is from business as well as private individuals.

“The chamber was concerned about adequate provision of essential infrastructure but the municipality seems to be geared to meet whatever demands might arise.”

Stassen was confident that housing would not prove to be a problem.

“The erven in town are big ... and many people are speaking about subdividing.”

Yesterday, Elundini municipal spokesperson Steve Schmidt, said the local authority was busy laying out 124 new serviced residential erven.

“As far as other amenities, such as a school, we have an excellent one in the town which caters for about 500 pupils and has several award-winning teachers on the staff,” Stassen added.

Confirmation that the massive Ugie plant would be in production by early 2008 has been widely welcomed.

Viewed as the biggest-ever financial injection for the north-eastern region of the province, leading business figures including the former chief executive of the Eastern Cape Development Corporation, Kevin Wakeford, and his counterpart with the Border-Kei Chamber of Business, Les Holbrook, have expressed confidence in the future of the enterprise.