2. MANUFACTURING : Detergent Factory

An opportunity exists to develop a Detergent Factory in Molemole LM.

The investment opportunity comprises the production of a number of household care products (water dish wash, pine gel, etc.) and personal care products (hair relaxer, shampoo, etc.)

Emanating from the feasibility study, it was established that the initiation of a detergent factory at Molemole LM would be a profitable venture. The Detergent Factory has the potential to deliver high-quality detergent products on time to its distributors and buyers in the Limpopo Province and other markets.

Detergent manufacturing falls under the Chemical Industry Sector. The total global production of consumer chemicals was estimated at US$ 220 –250 billion in 2006, of which South Africa accounted for less than 1 %. The global consumption of cleaning and household products was around 12 million metric tons with estimated market value of around US$ 40 billion.

Three forms of legal ownership have been suggested for the Detergent Factory, i.e. converting the present “permission to occupy” (PTO) land tenure system into title deed, a partnership agreement between the Machaka Traditional Authority and a private investor and leasehold. The superiority of the partnership agreement over the two other options has been clearly demonstrated.

The Detergent Factory’s competitive edge will be its ability to provide high volumes and flexibility in style, while maintaining a quality product backed by excellent service.

A total of 34 employees, comprising of labourers, middle management and support staff will be employed.

Specifically an initial investment of R23 million under the title deed agreement, R19 million for the partnership agreement and R19 million if the leasehold arrangement is selected, will be required. Support structures for the Detergent Factory will include:

• LIMDEV
• Ntsika
• Trade and Investment Limpopo (TIL)
• LIBSA