NEWS ANALYSIS: Renewables sector being ravaged by state’s failure to co-ordinate
DCD Group sells its R536m wind towers joint-venture plant in the Coega industrial zone for R1, writes Mark Allix
DCD Group has sold its share of the R536m DCD Wind Towers joint-venture plant in the Coega industrial zone to the Industrial Development Corporation (IDC) for R1, as a lack of policy cohesion between government departments and state entities continues to ravage SA’s renewable energy sector. Such carnage comes amid more widespread industrial failures at a time when the domestic economy is barely growing. State empowerment and local procurement policies have been disrupted by evidence of corruption at state-owned enterprises and fading investor sentiment. That said, the Department of Trade and Industry is lauding the launch of SA’s first "internationally owned forged wheel-manufacturing facility". Italian company Lucchini has invested R200m in the factory. The plant imports blank railway wheels from Italy and adds value in SA. Lucchini is a recipient of the department’s 12i tax allowance incentive to the value of about R36m and a further training allowance of about R1.6m. The investme...