Today, the MEC for Economic Development, Environmental Affairs and Tourism (DEDEAT), Honourable Nonkqubela Pieters, formally unveiled the Orion Engineered Carbons (Orion) Tank Farm Project in Zone 7 of the Coega Special Economic Zone (SEZ).
The event celebrated the successful completion of the Project, which broke ground in April 2022, and the launch of operations at the facility. “The unveiling also underscored the culmination of effective collaboration between the Coega Development Corporation (Coega), the Department of Trade, Industry and Competition (the dtic), the Eastern Cape Provincial Government, the Transnet National Ports Authority, and Orion, safeguarding jobs in the region’s automotive and tyre manufacturing industries,” said Mr. Themba Koza, Coega’s Acting Chief Executive Officer.
The automotive sector is a cornerstone of South Africa’s economy, and the Eastern Cape plays a pivotal role in its success. The region’s automotive industry contributes significantly to job creation, economic growth, and exports.
“Today, through this project, we are saving 7000 jobs in the region—jobs that would have otherwise been lost. This is a fulfilling moment for us, as the 7th administration is mandated to build an innovative and inclusive economy that creates jobs. As we coordinate our efforts to achieve this, we must also prevent job losses,” said MEC Pieters. “We have a keen interest in the automotive sector because it is both crucial and under threat, as evidenced by the recent announcement of potential layoffs at Mercedes-Benz. In this context, we are moving swiftly and proactively to foster a future-ready automotive sector, evidenced by the completion of the Provincial Electric Vehicle Strategy and the planned rollout of 11 charging stations, in addition to the two already operational.
Innovative solutions must become the norm in our approach,” concluded MEC Pieters.
In terms of the Project’s socio-economic impact, the construction of the facility enabled the creation of over 200 jobs and the appointment of six SMMEs, while further jobs will be created during operations. Funding by the dtic played a crucial role in preserving 120 jobs at the Orion plant.
Mr. Corning Painter, Orion CEO, commended the successful collaboration: “We are grateful for the successful collaboration and support from our partners in South Africa.
The Tank Farm enables Orion to continue operating as a critical link in the supply chain for the country’s tyre industry.”
The state-of-the-art Tank Farm enables the transportation of black feedstock oil from the Port of Ngqura for subsequent storage and utilisation in the production of carbon black, a crucial ingredient in the manufacture of tyres and various high-performance applications.
The facility is a strategic addition to the region’s industrial landscape, offering essential storage and handling capabilities. The Tank Farm boasts a total storage capacity of two 18,000 m3 tanks. Each tank compromises 80 shell plates, totalling 19,2 metres in height and weighing a total mass of 289 tons per tank. The facility is equipped with modern infrastructure, including a 5.4-kilometre pipeline from the Port of Ngqura to the facility. This cutting-edge technology ensures efficient operations and strict adherence to environmental regulations.
The opening of the OEC Tank Farm solidifies the Coega SEZ’s position as a leading investment destination in Africa. This strategic development enhances the region’s appeal for industrial development, providing essential services to existing and future businesses.
By supporting the automotive and tyre manufacturing industry, the OEC Tank Farm contributes to the sustainability and competitiveness of South Africa’s automotive sector.
