HUNDREDS of local jobs could be on the line if Black Economic Empowerment (BEE) policies continue to pose detrimental obstacles for homegrown heavy equipment manufacturer turned global competitor, Bell Equipment.
Announcing the company’s interim half-year results to the media, Bell CEO Gary Bell said they have considered migrating some of Bell’s manufacturing operations in Richards Bay to Europe, where the company owns a factory in Eisenach, Germany.
Such a move would significantly impact the local economy.
Bell, which has grown into SA’s biggest manufacturer and distributor of heavy machinery, has created 1 600 jobs in Richards Bay, with a further 250 local companies supplying the manufacturer.
A total of 188 companies in the City of uMhlathuze is benefiting from its business, as well as 504 in KZN and 975 in SA.
But BEE policies, meant to redress the inequalities of Apartheid by uplifting disadvantaged groups, could instead translate into a spate of job losses if the company does not receive stronger support from government.
An undesirable BEE rating has caused the company to lose out on numerous contracts, while high import tariffs on steel and tyres adds to the disadvantage of doing business in SA.
‘In the last three years, the city has supported us, but we do not have the same understanding and relationship with other municipalities,’ said Bell.
‘There are 20 companies competing in the heavy machinery line, of which Bell is the only manufacturer in SA.
‘They are not contributing to any jobs in the manufacturing sector. While we pay 10% tariffs on steel, imported vehicles are duty free.
‘Ironically, as a company we would improve our BBBEE status if we imported, rather than manufacture locally, and the jobs will not be here.
‘Sadly, job creation is not linked to BEE.’
Read the full story in the ZO Monday edition.
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