Region
Central Karoo District Municipality
Laingsburg Local Municipality
South Africa
Western Cape

Sector
Manufacturing

Summary:

Opportunity for pallet, crate and dry rack manufacturing in Laingsburg local municipality, to supply the local agricultural sector

Contact
Stefanus Jooste

Email
stefanus@skdm.co.za

Tel
+27 23 449 1000

Pallet, crate and dry rack manufacturing

Project Description

The idea is to set up a manufacturing unit in Laingsburg, which will produce wooden pallets, crates and dry racks. The local fruit industry has a constant need for pallets for their produce but currently they buy them from outside municipality's borders.

Economic rationale

• There is a shortage of pallets
• The many fruit producers in the region would be the major customer segment incentivised to buy cheaper pallets locally
• The N1 passing through Laingsburg creates an ideal opportunity for wood supplies and for delivering the product to the main market in Cape Town
• The machinery needed for the production could potentially be used for furniture production as well

Employment

• It is estimated that 20 people would be employed.

Project value

• The total project value is estimated to R4.8 million
• The cost of the necessary land is only R20,000 since the municipality is involved
• The gross profit margin over the first four year period is estimated to 31.6%