Divisions

Hosaf

Hosaf manufactures and distributes polyethylene terephthalate resin (PET) for the bottle and packaging market, polyester staple fibre for the traditional and industrial textile sectors, and produces recycled PET resin as a raw material substitute.

The use of PET (used to make clear plastic containers) has gained momentum worldwide and has become packaging of choice for soft drinks and mineral water around the world. This growth, continuing at a rate of 7% a year, shows no sign of slowing as the packaging industry recognises the benefits of PET on the basis of cost, durability and clarity, coupled with its recycling potential. As one of only two producers of PET in SA, Hosaf is gearing itself up to move with this global growth, and currently has a 50% market share in South Africa.

PET is used for packaging of bottled water and soft drinks. Ninety percent of the PET bottle resin is sold on the local market in the form of pellets produced in the company’s state of the art plant in Durban, to leading converters such as Xac Pet (a major supplier to ABI, bottler of Coca-Cola), Boxmore and the Astrapak group, with the balance being exported. Polyester staple fiber is produced at the Durban site and used in the traditional textile spinning sector. Specialty and industrial fibres are produced at the Cape Town plant and are used for duvets, pillows and insulations. This move into specialty and industrial fibres is a strategy devised to protect Hosaf from the decline in the primary textile sector.

The Durban plant has the only continuous polymerisation plant in the sub-Saharan Africa which is more cost effective and consistent than the batch process used by other local producers. The most modern technology is utilized and both plants are ISO 9001 accredited. PET is approved for use by both Coca-Cola and Pepsi.

Due to the recyclable qualities of PET, the company has built a recycling plant in Johannesburg under the auspices of Hosaf recycling with a current capacity to recycle six thousand tons of PET bottles a year (equating to approximately 4% of SA’s consumption). Increased capacity is on track for the end of 2008.

Hosaf is a member of Petco, an industry initiative aimed at promoting the collection and recycling of PET bottles.