top-news-1350×250-leaderboard-1

YOA Cable invests R160m to expand Durban fibre plant

YOA Cable’s journey began with an initial investment of R150 million, which helped to establish a local presence in optical fibre cable manufacturing in South Africa.

Yangtze Optics Africa (YOA) Cable today announced the expansion of its 14 000 square metre fibre optics manufacturing plant at Dube TradePort special economic zone in Durban after making a R160 million investment in the facility.

The company’s total investment now stands at over R320 million, marking a milestone in local optical fibre manufacturing and innovation, it says.

YOA Cable’s shareholders are Chinese-based Yangtze Optical Fibre and Cable Joint Stock Company, which has a 74.9% stake in the company, and JSE-listed Mustek, with a 25.1% shareholding.

The expansion of the factory comes after the company in 2022 announced it was planning to extend the facility.

This, as demand in fibre connectivity continues to rise in South Africa. YOA Cable counts South African fibre network operators, such as Dark Fibre Africa, Openserve and Vumatel, as its clients.

Speaking at a launch event held in Durban today, Pieter Viljoen, chief executive officer of YOA Cable, said: “Our journey began with an initial investment of R150 million, which helped to establish a local presence in optical fibre cable manufacturing in South Africa.

“This latest strategic move is set to transform our operations, significantly increase the production capacity of locally manufactured optical fibre cable and explore new opportunities for growth across the Southern African region.

“Working with other strategic partners, we are now able to localise the supply of natural polyethylene supply. This is the first locally produced polyethylene product used in the manufacturing of optical fibre cable in South Africa, in more than 20 years. This is an example of impactful localisation of the optical fibre supply chain.”

According to YOA Cable, the facility’s expansion directly responds to the growing demand for high-speed connectivity, fuelled by the rapid digital transformation across industries, including education, healthcare, e-commerce and government services.

The company believes the expansion will be crucial in supporting Southern Africa’s growing digital economy.

YOA Cable's total investment now stands at over R320 million.

YOA Cable’s total investment now stands at over R320 million.

“With the rapid expansion of 5G and AI-driven technologies, the demand for high-speed connectivity has never been greater. With this increased scale, YOA Cable will now be at the forefront of this digital transformation in South Africa,” Viljoen said.

He further highlighted that this development will not only enhance scalability but also strengthen its competitive-edge in an increasingly evolving market.

“The growth initiative will enable YOA Cable to tap into new opportunities beyond South Africa, including neighbouring countries where it has previously seen success, and further enhance efforts to contribute towards the country’s skills development efforts in this highly-specialised sector.”

Government has welcomed YOA Cable’s investment in the country’s digital infrastructure.

According to Yunus Hoosen, head of Invest SA within the Department of Trade, Industry and Competition: “This expansion marks a pivotal moment in the country’s push towards achieving digital inclusivity and strengthening local manufacturing capabilities.”

Speaking at the event, Hoosen noted the South African government views this investment as an integral part of the country’s broader digital transformation strategy.

“The ongoing collaboration between the private sector and government, through initiatives like this, is helping to create a more connected, inclusive and innovative economy for all South Africans,” he said.

Viljoen added: “This is a game-changer for driving manufacturing localisation in the country. Local optical fibre cable manufacturing and expertise will enable direct collaboration with telecom operators and fibre network owners to develop fit-for-purpose products supplied cost-effectively. In turn, this will be important in expanding broadband access, bridging the connectivity gaps, and particularly providing connectivity in remote and rural areas to enable great economic participation.”

YOA Cable says the cable industry in South Africa is a designated sector, recognised by the Department of Trade, Industry and Competition as essential for economic growth and sustainability.

As a result, it adds, the industry faces direct competition from international suppliers, particularly where large-scale manufacturing enables cost advantages.

“As we expand, our goal is not just to compete locally but to match or exceed the affordability and efficiency of imported optical fibre cables to ensure our products remain competitive,” said Viljoen.

“The successful deployment of local optical fibre infrastructure depends not only on our expertise but also on skilled professionals in optical fibre technology.”

YOA Cable currently employs 155 people, says the firm, noting the expansion is set to create additional employment, with the company set to employ just over 210 staff this year.

Approximately 25% of these positions will be dedicated to learnerships and internships through YOA Cable’s Learnership and Internship Programme, which directly supports the Youth Employment Programme.

“Through these internships, we have been able to absorb young people into different departments within the business, in both technical and non-technical roles. In turn, we have the opportunity to upskill, create employment and drive skills development to create a pool of technical expertise for the country,” Viljoen concluded.

The reception of YOA Cable in Durban.

The reception of YOA Cable in Durban.

Crédito: Link de origem

Leave A Reply

Your email address will not be published.