Dr. Sibongiseni Dhlomo, KZN MEC for Health, Dr. Bridgette Gasa, Chairperson Dube TradePort, Mr. Sibusiso Lushaba, Director of HBM-SA Health Protection, Mr Sihle Zikalala,KZN MEC for Economic Development, Tourism and Environmental Affairs, Inkosi Phathisizwe Chiliza, Chairperson Provincial House of Traditional Leaders, Mr. Hamish Erskine, Acting CEO, Dube TradePort

Construction of condom manufacturing facility in Dube TradePort

Construction of condom manufacturing facility in Dube TradePort

Rendering of HBM-SA Health condom manufacturing facility in Dube TradePort

All images to be credited to Dube TradePort Corporation

KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Mr Sihle Zikalala, said that the new state-of-the-art facility will be developed by HBM-SA Health Protection Services – a partnership between US-based HBM Group and SA Health.

HBM group was established in 1996. It is based in the USA while manufacturing occurs in China.

SA Health provides condoms, procedure packs for voluntary medical male circumcision and medical consumables such as disposable wear, gloves, syringes and needles, surgical masks and advanced wound care products.

Up until now, SA Health has imported all its stock from China. However, government’s Special Economic Zone incentives programme saw it decide to source its stock from the soon to be built Dube TradePort facility.

The new facility will manufacture for both the local and export markets.

Products will include government’s newly branded Max condoms which have replaced the Choice brand.

The new R 150 million factory will create 145 local jobs in its first phase of development.

MEC Sihle Zikalala explained: “As government, we are working to create a formidable medical and pharmaceutical production and distribution cluster within Dube TradePort’s Special Economic Zone. With last week’s announcement that Cipla Bio-Tec will be investing R 1.3 billion in a pharmaceutical manufacturing facility, and now this manufacturing plant by HBM-SA Health Protection Services, we are well on our way to establishing Dube TradePort’s Special Economic Zone as Africa’s powerhouse in the production and distribution of medical and pharmaceuticals.”

Sibusiso Lushaba, Company Director of HBM-SA Health Protection Services, added: “SA Health has evolved from being an entity that offered health and hygiene solutions to being a significant contributor in the distribution and supply of medical products throughout Africa. SA Health has supplied the National Department of Health with 500 million condoms since 2012. The setting up of a local manufacturing plant was a natural progression given the existing distribution networks, proven marketing strategy, and reliable relationships the company had developed over the years.

The KZN Growth Fund (the sole funder of this project) provided R42.5m in debt funding for what will be the second condom manufacturing facility in the country

“The Fund played a leading role in assisting the project promoters with structuring the transaction as well leading negotiations for better terms with the foreign partner. Financing this project was a no brainer as it ticks all the right boxes – localisation of manufacturing and earnings, foreign direct investment, impacting positively on the balance of payments (reducing imports and increasing exports), skills transfers from international partners, creation of Black Industrialists and, most importantly, creating 145 new employment opportunities,” said  Siddiq Adam, the CEO of KZN Growth Fund.