Despite earlier concerns about the Coega industrial development zone not attracting enough investors, a group of potential investors from Austria are expected to visit the zone on Thursday to explore investment opportunities there.

Representing 11 Austrian companies, the potential investors will be led by Commercial Counsellor of the Austrian Embassy in South Africa, Stefan Pistauer.

The Coega Development Corporation (CDC) says it is excited about the interest the Austrians are showing.

CDC marketing and communications manager Vuyelwa Qinga-Vika said: "Potential investors visit potential investment destinations all the time. The Austrians want to look at our business climate, so they can see if it is a place they would choose for their future investments.”

Pistauer said Austrian companies were interested in investment opportunities in South Africa, and that one company was setting up operations in Durban. "I foresee increased interest in the South African market from Austrian firms because of the growth prospects of the motor industry.”

The automotive industry is already the biggest employer in the Eastern Cape, employing more than a third of the province's working population in plants in Port Elizabeth and East London.

Andre de Wet, the province's MEC for economic affairs, environment and tourism, said half of the country's automotive exports came from the Eastern Cape. Qinga-Vika said the Austrian companies represented were mostly component makers.

Pistauer said half of Austria's exports were to the South African motor sector. "This is likely to grow over the years, considering the kind of interest that our companies have in South Africa.”

General director of the automotive cluster in Austria, Uwe Galler, was part of the delegation, and although he was excited about the visit, he admitted that finding an investment would not be easy. "Even though we know that it is not going to be easy, we are prepared to take the challenge, because we know that there are lots of things to consider when one is looking for an investment location,” he said.

The delegation has also visited China and the US.

Meanwhile, the Coega zone was still waiting for its biggest investor, Canadian aluminium producer Alcan, to make an announcement on its planned R2bn investment. The firm plans to build an aluminium smelter, but this is still hanging in the balance.

Although De Wet told the Daily Dispatch last year that an announcement on the project was expected "early this year”, nothing has happened. Qinga-Vika would not say when the final announcement was expected, only that "Alcan will announce its decision once it has finalised discussions with all the other role players in the country, including government.“

The Canadian company was reportedly negotiating capacity issues and a special price with Eskom, as it would be one of the biggest electricity users in the province.

The Coega zone has attracted investments including Straits Chemicals' R1,1bn chlorine factory and water desalination plant. MAN-Ferrostaal will invest R1,6bn in a stainless steel precision strip mill.

Possible investors represented in the group are mostly component manufacturers.