SAMES no longer manufacturing in SA

22 July 2009 News

Despite attempts over several years to continue with the manufacture of integrated circuits (ICs) profitably in its plant at Koedoespoort, the current market conditions, the aggressive competition from China and the current Rand strength have made it impossible to do so, according to South African Micro Electronic Systems (SAMES).

The company has decided to cease wafer production at its Koedoespoort plant and move the wafer manufacture to a plant in China. The integrated circuit design (ICDC) division will take over the management of manufacturing outsourcing and continue with the design and marketing of the SAMES product range, while the existing premises and plant will be used for a variety of other ventures. The company says staff will be re-deployed to these other ventures and redundancies will be kept to a minimum.

The company has apparently been aware for some time that the manufacture of ICs in the existing facility would not be sustainable in the long term and has been exploring alternative uses for the facility. The unique facilities, in particular the clean room and clean water plant, lend themselves to a variety of alternative uses. It has been decided to concentrate primarily on establishing an active pharmaceutical ingredient (API) facility and a pharmaceutical formulation facility. SAMES believes that these facilities can be converted to supply the bulk of the anti-retroviral (ARV) drugs required in South Africa.

Secondary uses include a micro-electromechanical systems (MEMS) facility and the production of health/mineral waters. In the meantime, the company will continue with its two existing operating divisions, ICDC and Elsec, the security hardware manufacturer.

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