Italian gold
manufacturer set to
invest in SA
Stephen Laufer
BASSANO DEL GRAPPA - The world's
second-largest gold jewellery manufacturer by volume,
Gruppo Industriale Filk, will invest in SA if government
goes ahead with a plan to purchase 40 light utility
helicopters from Italy's Agusta.
It is understood that the departments of trade and
industry, finance and defence and all of the preferred
suppliers are being urged to complete negotiations on
SA's R29bn arms-for-investment package by the end of
March. Guarantees are being sought from all bidders
regarding the value and diversity of their defence and
civilian investments in SA.
Agusta said late last week that if final tender negotiations
on the arms-for-investment package were successful, it
also planned to give SA arms manufacturer Denel a
licence to build and market its new single-engined
eight-seater civilian helicopter, the Koala. Denel would
probably gain rights for the African and some Far
Eastern markets.
An SA defence industry analyst said the Koala deal
would be a significant step for Denel into the civilian
market and could be crucial to the company's long-term
viability, as defence spending was sinking worldwide.
The company faces privatisation, with British Aerospace
and SA empowerment groups expected to take
significant stakes.
Gold beneficiation was among 22 desired investment
areas identified by the SA department of trade and
industry in connection with the arms procurement
package.
The department has told bidders not to disclose details
of proposed investment volumes or job creation numbers
connected to specific projects.
Filk founder and CE Pietro Cremasco said the gold
chain manufacturer hoped to be operational in SA by the
end of this year. The company could concentrate
production of its hand-assembled bracelets in SA. It was
"only scratching the surface" of international demand for
hand-assembled bracelets.
With a total annual output of 30 tons of a wide variety of
gold chains, Filk employs 35 people in bracelet
assembly. Cremasco said this was insufficient as world
demand was rising. SA offered several advantages over
Italy for an expansion of production. Its growing tourist
and domestic markets were attractive, as were the lower
wages paid in SA.
A shortage of skilled labour in northern Italy, where gold
jewellery manufacturing is concentrated, meant the
company had to move abroad to expand.
Backed by the Italian government, the prospective
Agusta deal gave Filk sufficient confidence to seriously
plan moving abroad for the first time. Besides investing in
machinery, Filk would train SA workers in all aspects of
production.
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