With an investment of R1,875bn, PG Bison's MDF Contiroll line investment in Mkhondo will bring its installed capacity of MDF up to a total of 1,190 cubic metres per day across its two MDF plants in Boksburg and Mkhondo. It will ensure that PG Bison can meet the growing demand for locally produced MDF in local and export markets.
Rising demand
Urbanisation and significant growth in an aspirational, middle-income population is driving the need for increased and better-quality furniture and home storage solutions. The demand for premium furniture and cabinetry components with gloss, matt, and spray painted finishes is increasing the demand for MDF even further.
The new MDF line and the recently completed particleboard line will position the PG Bison Mkhondo cluster on the map as a global powerhouse for producing wood- based panel products in Southern Africa. The manufacturing facility will soon be the only one in Africa to house a particleboard line, an MDF line, upgrade facilities, resin manufacturing and paper treaters on one site.
Localisation
According to Gerhard Victor, PG Bison's CEO, the particleboard and MDF expansions will ensure that PG Bison remains a leader in the world-class decorative wood-based panel products.
"Our Proudly South African products are a viable and cost-effective local alternative to imports. They enable our customers to keep lower stock levels, which means better stock turns and improved cash flow, rather than tying up working capital in large tranches of imported products. And the products have significantly better lead times than importing, so our customers can guarantee uninterrupted servicing of their customers' needs well into the future", says Victor. A key consideration in PG Bison's investment strategy is localisation. PG Bison understands that without a thriving local industry, it would have minimal prospects in South Africa.
Exports
"While we continue to see an increase in local demand for our products, we have a growing export customer base that we must also support. As a key supplier to many businesses across the entire value chain, we are responsible for continuously innovating and ensuring that we remain globally competitive to support our customers' growth, locally and internationally, and ensure the industry's long-term sustainably," explains Victor.
Economic growth
As a corporate citizen of South Africa with a vested interest in the country's economic growth, PG Bison believes the forestry and broader furniture manufacturing industry's well-being is paramount. By extension, expanding manufacturing capacity helps increase business growth and employment opportunities across the value chain.
"We are in the business of inspiring and enabling beautiful living spaces," explains Justin Berry, marketing and strategy development executive at PG Bison.
Future proofing
Berry says PG Bison is helping to future-proof Southern Africa's furniture, building and construction industries by investing in capacity to support the growing demand for quality, decorative products in Africa.
"The sharp increase in home improvement activities spurred by the Covid-19 lockdowns in 2020 and 2021 has steadied. However, we anticipate the work being done by governments across Africa on the AfCFTA and the growing demand for interior decorative solutions across the market will drive demand for PG Bison products into the future," he says.
https://www.woodbizafrica.co.za/august-2023-issue-29/
www.pgbison.co.za
