- Sumitomo Rubber Unveils R970 million Tyre Production Facility in Ladysmith
Sumitomo Rubber South Africa (PTY) LTD (SRSA), manufacturer of the popular Dunlop, Sumitomo and Falken tyre brands, officially launched its new, state-of-the-art Truck and Bus Radial (TBR) factory in Ladysmith, KwaZulu-Natal on Tuesday, 02 October 2018.
This second phase of SRSA’s multi-billion-rand investment to upgrade and modernise the plant’s capacity saw a further injection of R970 million to introduce and manufacture truck and bus tyres locally, bringing the total investment into the Ladysmith facility since 2014 to more than R2 billion.
VIP guests, stakeholders and dignitaries were given an opportunity to tour the world-class TBR factory. They included government and industry representatives together with President and CEO of Sumitomo Rubber Industries, Ikuji Ikeda, who delivered an address and unveiled a plaque to mark the opening of the facility.
He said: “Sumitomo Rubber South Africa has been a part of Sumitomo Rubber Industries group company from December 2013 and from then we have worked together to step ahead in various areas of the business, such as safety, Passenger Car Radial tyre production, quality, products, sales channel and people. This marks the first time Sumitomo Rubber Industries has established a Truck and Bus Radial factory outside of Asia.”
Ikeda said the the reasons for proceeding with the investment – despite the challenges of developing a TBR factory from scratch – included the African market’s potential and particularly the Free Trade Agreement which would support SRI’s business initiatives. He added that local TBR tyre production would result in the expansion of business for truck and bus vehicle manufacturers and present opportunities for government related businesses.
CEO of SRSA, Mr Riaz Haffejee outlined the vision and purpose of the TBR facility and the range on offer. “We will be industrialising a total of 24 sizes between our Dunlop and Sumitomo brands, from this year until September 2019,” he said.
Haffejee also elaborated on the community impact that the investment and development of the factory has had: “Following SRSA’s first phase factory investment in 2014 which saw us increase our output of high-quality passenger and sport utility vehicle (SUV) tyres at this plant, the new TBR factory has created growth and a brighter future for the local community. SRSA’s total investment in employment, utilities and procurement has doubled since 2014, which has had a direct impact on the town and has served as a catalyst for community development and entrepreneurship.”
Ikeda also noted that 19 TBR employees had been sent for training to the company’s Miyazaki factory in Japan, where they were able to develop their technical methodology and gain an understanding of SRI’s processes in order to transfer this knowledge to shop floor staff in South Africa.
The keynote address at the launch was delivered by the MEC for Social Development, Weziwe Thusi. Guests were entertained by local performers, Thee Legacy, as they enjoyed a three-course luncheon.
Renai Moothilal, executive director of NAACAM (National Association of Automotive Component and Allied Manufacturers), who is also overseeing the operations of the SATMC, remarked: “SRSA must be recognised, not only for its significant investment in plant and processes, but for its commitment to a region outside South Africa’s industrial heartlands, and its contribution towards employment. They have demonstrated how automotive component manufacturers can drive true economic development across the country and the importance of ensuring that a greater level of manufacturing of automotive component happens.”
Production at the plant commenced as planned in July 2018. The local production of the TBR range – following extensive research and development processes – will ensure that customers, both in South Africa and on the African continent, have the right tyre for the country’s specific application. These will be designed in Japan, tested in Africa and manufactured in South Africa, for Africa with the Ladysmith factory certified to test TBR tyres to European compliance standards.
The history of innovation and proven pedigree that the Dunlop brand holds in the tyre business, together with the latest Japanese technology and engineering insights from SRSA’s parent company, SRI, make for a formidable combination in the tyre industry.
- Key issues arising from Presidential Jobs Summit - Report from NAACAM IR Advisor Mark Roberts
Following on from last week’s two-day Jobs Summit, President Cyril Ramaphosa has called on all stakeholders to assist in the creation of much needed jobs in the country and against this background the National Economic Development and Labour Council (NEDLAC) constituencies signed the historic framework agreement, which, amongst other measures, includes the following key actions:
• Investment of R100bn (over five years) in black enterprises and firms in the industrial sector;
• Bizniz in a Box Youth Empowerment Programme to equip young people with entrepreneurial skills and actual business opportunities;
• Commitments at the sectoral and company level to support local procurement of goods and services to boost employment and job retention;
• Finfind youth employment and SMME funding to provide training for unemployed youth;
• R1.5 billion for a new Smallholder Support Fund and R1.5 billion for the Township Enterprise Fund;
• Various interventions to create career pathways for the youth through programmes at TVET Colleges, the Installation Repair and Maintenance Initiative, and in the fields of health and, travel and tourism;
• Expansion of a Hub Model and incubators for SMME development;
• Harambee, working with all social partners, will strengthen its pathway management system to ensure that 1.5-million young people are part of an active network of work seekers and, that 500000 young work-seekers are able to enter first jobs or on pathways to generating an income to sustain themselves;
• Up-scaling the implementation of the 30% set aside of government spend for SMMEs and co-operatives;
• Strong focus on Early Childhood Development (ECD), including the KYB Enterprise Incubator, to support women-owned ECD centres;
• Building of 48 catalytic human settlement projects which will provide 635 0000 housing opportunities by 2019;
• Workplace equity and representation on company boards;
• The Framework Agreement sets up a mechanism to address regulatory constraints to investment;
• Reporting by business on executive pay ratios in annual reports;
• Measures to address customs fraud and illegal imports;
• Extension of the Employment Tax Incentive for a further 10 years;
• Establishment of nine Agri-parks to promote agriculture and agro-processing and value chain;
• Acceleration of productive land reform;
• Community-based and owned approaches to fast track rural water access;
• Increasing recycling tonnage to 2.7-million tonnes over five years;
• Establishing a Presidential Climate Change Co-ordinating Commission; and
• Commitment to support the anti-corruption strategy and implementing a zero-tolerance approach to corruption.
WOMEN IN AUTO INDUSTRY via AIDC EC GRADUATE DEVELOPMENT PROGRAM
The Automotive Industry Development Centre in the Eastern Cape is demonstrating how South Africa's automotive supply chain is transforming and particularly how WOMEN can thrive in the male dominated automotive manufacturing sector.
The organisation, a subsidiary of the Eastern Cape Government - mandated to assist manufacturers become more globally competitive, has up-skilled and placed 92% of black unemployed engineering graduates in its graduate development programme, into permanent jobs in the sector, over the past three years.
What is more remarkable is that 4 out of 10 placed graduates emerging from the Programme for Industrial and Manufacturing Excellence (PRIME) are WOMEN entering the male dominated world.
The programme has been so successful that almost all of the graduates enlisted have been placed into industry. What is more AIDCEC CEO Hoosain Mahomed says that 25% of PRIME's grads move into middle management in the first two years.
Mahomed says the AIDC has completed over 30 Six Sigma Green Belt projects initiated by the AIDC and its graduates on the shop-floors of automotive companies.
"The results are undeniable", Mahomed says. "The Green Belt projects have the potential to save the companies involved over R10m and the feedback from employers is positive but an additional key principle here is the transformation of the sector and that includes gender equity.'
PRIME graduate Maite Maraka is now a Junior Industrial Engineering Technician at GUD Holdings: "Never in my wildest dream did I think I will be permanently employed due to the increasing rate of unemployment in South Africa, but after successfully completing my training with the AIDC, GUD Holdings saw the need to create a new position for me as the 1st industrial engineer in the entire organization and the only woman in the manufacturing/production department."
Noluzuko Govuza is now a Quality Systems and Supplier Engineer at DANA SPICER AXLE SOUTH AFRICA.
"When I came to DANA our Quality department was in a process of correcting findings that were noted in the previous audit, and which I have subsequently contributed to.
"The Quality Department introduced a new system to conduct Audits. Today I am solely responsible for managing and generating daily, weekly and monthly reports on the performance of LPAs. I have 9 Group-leaders, 23 Team-leaders, 4 Process Engineers, 2 Area Managers and 4 Functional Managers (Including the Plant Manager and Operations Manager) reporting to me on these LPAs."
Following the successful bid by eThekwini Municipality to host the NAACAM Show 2019
, delivered in partnership with the Durban Automotive Cluster (DAC), we’re extending a pre-industry release invitation to all 2017 exhibitors. The NAACAM Show 2019 will take place at the Durban International Convention Centre (ICC) from the 12th
This opportunity to book prime exhibition space,
pre-launch to all interested parties, is available from Monday 28th May to Friday 1st June
with payment to receive the early-bird discount of 10% due by 31 August 2018. Click here
to view the floorplan and book your exhibition stand.
The NAACAM Show 2019 is expected to see +1600 industry members converging on Durban for the 3-day conference, exhibition and pre-arranged buyer-supplier meetings. NAACAM Show 2017 was adjudged a great success and we plan to present an enhanced, world class delegate and exhibitor experience based on global benchmarks for this kind of event.
We would like to encourage you to take advantage of the growth opportunities the initiative offers and participate strongly. The benefits of participating are clear, at the NAACAM Show 2017 60% of respondents agreed or strongly agreed that “It is likely that new business will be secured in the future” based on attendance.
This is an industry led initiative
that is supported and endorsed by the Department of Trade and Industry, the Original Equipment Manufacturers (OEMs), Automotive Supply Chain Competitiveness Initiative (ASCCI), National Association of Automobile Manufacturers of South Africa (NAAMSA) as well as the National Union of Metalworkers of South Africa (NUMSA).
For any enquiries, please contact the NAACAM Show 2019 Project Management team on (031) 764 6100, or email: firstname.lastname@example.org
- MAHLE ramps up production for large automotive OEM
Durban, South Africa - MAHLE Behr South Africa (MBZA), a specialist for automotive air conditioning and engine cooling in both passenger and commercial vehicles, recently launched their new production line to manufacture and supply engine cooling modules for the new BMW X3, which is being manufactured at BMW Group Plant Rosslyn in Tshwane. The manufacturing process requires sophisticated technology used for the first time in South Africa.
The result of a significant investment by MAHLE, this new production line is based at MAHLE’s plant in Durban and is currently ramping up to full production. MBZA’s commitment to localisation, in terms of the Automotive Production and Development Programme (APDP), focuses on expanding local suppliers’ capabilities through skills development and technology transfer.
“Localising is critical for the automotive industry if we are wanting to achieve sustainable growth in South Africa. This means, investing in the supply chain on the ground, in this way we work with suppliers to become globally competitive.” says Alex Holmes, Commercial Director for MBZA.
“A new building area has been allocated on the existing site and significant investment has been made in capital equipment and in the training of new employees, as the assembly process is totally new to the Durban site” says Holmes.
According to Holmes, the development of MBZA’s employee skills has been crucial to ensure that the quality of their components is in line with world standards. Therefore, MBZA has spent a significant amount of time and money training their employees both locally and abroad.
Further to this, MBZA is focused on the communities near to where they operate, and the areas in which their employees live. Through MAHLE’s mobile science lab, “Science2Go”, they are able to provide science and maths tuition to more than 20 000 learners from the local area each year.
“At MBZA we want to inspire, educate and spark the interest of science leaders for tomorrow” says Jolene van Heerden, Communications Manager for MAHLE Behr South Africa.
Bongekile Myende, a MBZA employee holding up a fan motor assemblyjust after it has passed the balancing check
Engine Cooling Module ready to be placed onto carrier for shipment (with Alex Holmes, Commercial Director of MAHLE Behr South Africa)
About the company
MAHLE Behr South Africa is a specialist component manufacturer of air conditioning and engine cooling products for both passenger and commercial vehicles.
The company is the local subsidiary of MAHLE, in Stuttgart Germany. The South African division has been part of Behr since 1999 and has plants in Durban and Port Elizabeth.
The final products currently manufactured include components for engine cooling modules, radiators, charge air coolers, condensers, and evaporators in Durban, and HVAC and aluminium and stainless steel tubes in Port Elizabeth.
Jolene van Heerden, Communications Manager
Tel: 031 7197718 Mobile: 0836307503
- NAACAM Media release: 24 April 2018
Increased Localisation opportunities exist for SA Automotive Component Manufacturers
This is one of the key findings contained in the South African Automotive Supplier Industry Benchmark Report 2018. The report, produced for the National Association of Automotive Component and Allied Manufacturers (NAACAM), is based on research undertaken by B&M Analysts, a specialist benchmarking consultancy, and stems from their comprehensive benchmarking activities in the automotive sector. The report contains benchmark data for South Africa-based suppliers, as well as comparators from developed and less-developed countries.
Renai Moothilal, NAACAM Executive Director, highlighted, “The customer benchmark findings contained in the latest report confirm that local OEMs are wanting to increase their purchases from South Africa suppliers.”
Moothilal added, “Three-quarters of the SA OEM customer respondents engaged with in 2017, indicated that they are looking at increasing their total buy from current local suppliers in coming years. This is related to purchasing more of the same products and expanding the range of products bought from suppliers. It also includes the increased buy of newly developed products from local suppliers. This seems to reflect a change in the way localisation has been viewed, and is possibly reflective of OEMs starting to plan for a future production environment that rewards higher localisation.”
This year’s report outlines steps suppliers can take to unlock these opportunities. It found that local suppliers need to focus attention on better meeting customer product development demands. To achieve this, local suppliers need to ensure an improved understanding of customer development needs, as well as what skills and supporting capital and technology is required to realise increased growth opportunities from local OEM customers. In addition, suppliers need to look at influencing and situating the development needs of local customers within their research and development networks, whether globally located or not.
Moothilal reflected on the important role that government’s support programmes, especially the DTI’s Automotive Production Development Programme (APDP) and its associated cash grant, the Automotive Investment Scheme (AIS), is playing in supporting the industry’s localisation drive. The soon-to-be-announced post-2020 automotive policy is expected to have a heightened focus on localisation in the sector, with work to date having highlighted the importance of shifting South Africa’s current localisation average of less than 40% to 60% by 2035.
Moothilal concluded by confirming, “The automotive sector remains a priority South African manufacturing sector, contributing significantly to the country’s GDP and export basket. Whilst the production of local OEMs is crucial, the largest economic spinoffs will be realised in the supply chain.”
The South African Automotive Supplier Industry Benchmark Report 2018 is delivered as part of NAACAM’s continued focus on keeping the local industry and its members appraised of relevant industry trends, developments and focus areas. This includes the assessed benchmarked performance of the local supplier industry.