Newcastle Municipality has welcomed a major private sector investment that is expected to support industrial renewal, economic growth and job creation following a strategic engagement between Mayor DX Dube and representatives of Lions Bay Resources on June 3.

The meeting, held in the Mayor’s Parlour, marks a significant milestone in the municipality’s efforts to attract investment, stimulate economic activity, and position Newcastle as a preferred destination for industrial development and business growth.

The engagement, led by Council Speaker TM Zulu, was attended by Deputy Mayor AT Nkosi, Amajuba District Municipality Mayor TE Mthembu, Development Planning and Human Settlements chairperson Bertie Meiring and senior municipal officials.

Former KCE plant set for transformation

During the meeting, Lions Bay Resources confirmed the successful acquisition of the former KCE plant within the Karbochem Industrial Park.

The acquisition marks the beginning of Phase 1 of a strategic investment programme that will see the facility refurbished and re-developed into an energy generation plant over the next 12 months.

The investment is expected to play a key role in revitalising Newcastle’s industrial assets and reflects growing confidence in the municipality’s long-term economic prospects.

The mayor described the project as a catalyst for economic renewal and a strong indication that Newcastle remains an attractive destination for investment.

“The re-development of the Karbochem Industrial Park represents far more than an investment in infrastructure. It is an investment in people, jobs, enterprise development and the future prosperity of Newcastle. As a municipality, we remain committed to fostering strategic partnerships that unlock economic opportunities, strengthen local industries and improve the quality of life of our residents,” said Dube.

He added that the investment aligns with the municipality’s 2026/27 Integrated Development Plan, Vision 2035, and broader economic development objectives aimed at driving inclusive growth and expanding economic participation.

“As we advance our development agenda, we require partners who share our vision of a thriving, competitive and investment-ready Newcastle. The commitment demonstrated by Lions Bay Resources sends a strong message that Newcastle remains open for business and continues to offer significant opportunities for industrial growth, innovation and investment,” he said.

Investment expected to drive jobs and economic growth

The project is expected to contribute to job creation; skills development; support for small, medium and micro enterprises; infrastructure improvements; and increased economic activity across the region.

Municipal leaders also expressed optimism that the investment would encourage further interest from investors in Newcastle’s industrial and commercial sectors.

Located within one of KwaZulu-Natal’s historically significant industrial regions, Newcastle offers established industrial infrastructure, regional connectivity, a skilled workforce and access to key economic corridors. These advantages position the municipality as a competitive investment destination across the manufacturing, energy and logistics sectors.

In his closing remarks, Dube reaffirmed the municipality’s commitment to supporting responsible investment and creating an environment that enables sustainable economic development.

“This investment validates our belief that Newcastle’s industrial assets continue to hold immense value and untapped potential. We view this development as the beginning of a broader journey towards industrial renewal, economic diversification and long-term prosperity. Newcastle Municipality stands ready to work with investors who are committed to creating jobs, empowering local communities and contributing meaningfully to our shared vision for growth,” he said.

The engagement forms part of Newcastle Municipality’s broader investment attraction strategy aimed at unlocking economic opportunities, revitalising strategic industrial assets and positioning Newcastle as a leading centre for investment, innovation and sustainable development in KwaZulu-Natal and South Africa.

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