RIFENG, a multinational piping manufacturer and supplier is proud to announce that it will be establishing a state-of-the-art, smart production facility in Modderfontein, Gauteng, South Africa.
RIFENG is one of the biggest manufacturers of piping in the world, supplying 500 million metres of multilayer piping annually – of which ten million metres are shipped to Africa. RIFENG’S business model is to develop markets through local agents and, once sales reach a critical mass, to expand into local manufacture. Consequently, RIFENG has to date established eight production facilities in other countries. The benefit of the experiences and successes in these countries will be immediately available to the new facility in South Africa.
The new manufacturing operation in SA will be known as RIIFO South Africa and will offer the exclusive RIFENG brand to Sunridge importers and wholesalers, as it has done for the past 15 years, but now as a proudly South African venture.
Charles Jerome, the CEO of Sunridge, is excited about this major step for the RIFENG products, Sunridge and SA. “The new factory in South Africa is scheduled to be online and to commence operation by the end of 2022. It is going to bring excellent new opportunities for our customers.
“Firstly, customers who are loyal to the RIFENG brand will obviously benefit enormously from having local manufacture and supply available. Secondly, Modderfontein, which is situated in the industrial heart of South Africa, has a favourable geographical location as well as excellent transportation facilities, which will significantly reduce transportation costs for most customers in the African market.
“Thirdly, the planning and delivery times to customers in South Africa will be significantly reduced as will their layer, PPR and PVC piping systems for the growing African market. Finally, product manufactured in South Africa will qualify for local content standards and thus be approved for the infrastructural development projects anticipated by government.”
Annual production capacity for Multilayer PAP Pipe at the new facility is estimated to be more than twelve million metres, providing a stable piping supply for Africa. This will be of benefit to RIIFO South Africa as it will be able to supply into new markets in Africa, such as Tanzania, Ethiopia, Ivory Coast Senegal, Nigeria, Mauritius, and others where RIFENG already has an established market.
Further production lines for MLP piping, as well as lines for other products, will be added to the facility once initial capacity has been reached. RIIFO South Africa has significant expansion plans for multi-investment in inventory.
The initial investment in the property and plant is nearly R100m – RIIFO is hoping to get buy-in and engage with government on their stimulus program to look to a large expansion plan to invest a further USD50m (R750m) with a view to creating significantly more jobs in the country, and catering for the growing needs of the African market.
Local employment will be boosted by approximately 100 people in the factory, with additional employees for support and administration roles. Many more employees will be required as the factory expands as planned. RIFENG provides ‘on-the-job’ training and several skills development programs – all of which will benefit SA employees and their future careers.
While the core manufacturing plant will be imported from China to ensure consistent standards of manufacturing in all RIFENG facilities internationally, the boiler and as many parts and peripheral equipment as possible will be sourced from SA suppliers to enhance local content. In addition, gas will be used as the primary energy source to reduce the risk of disruption to manufacturing through load shedding.
To reduce carbon emissions and achieve sustainable development goals, RIFENG also plans to install heat recovery and photovoltaic systems by using abundant solar energy resources for the new factory soon. This will reduce the output of exhaust fumes and highly increase energy efficiency. RIFENG will continually review our social responsibility and provide top-quality, eco-friendly and affordable piping solutions to our users.