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Marina Biene – New President of AAAM

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Martina Biene, Volkswagen Group South Africa’s (VWSA) Chairperson and Managing Director takes over as President of the African Association of Automotive Manufacturers (AAAM) from Mike Whitfield who has been President since July 2020. Mike will remain on the Executive of AAAM as the Immediate Past President.

The AAAM was established in November 2015 with Jeff Nemeth from Ford as the first President and Mike Whitfield as the Vice President. It is the only African body focusing on the expansion and deepening of the automotive industry across the continent, by working with governments to shape policies that will attract investors to unlock the economic potential of the continent and align a global network of stakeholders, committed to the development of the Automotive industry in Africa.

During Mike’s tenure at AAAM, a Continental Automotive Strategy and Implementation Plan was developed in conjunction with the AfCFTA Secretariat, Africa Union (AU), UNECA, Afreximbank and ARSO and this was adopted as a living document by the AfCFTA Council of Ministers at a meeting in Botswana in February 2023. An AfCFTA Automotive Task Force has been formed to oversee, guide and implement this Strategy under the supervision of the Council of Ministers with the immediate priority to resolve the Rules of Origin.

AAAM’s role and importance in developing the automotive industry has also been recognised by the private sector which has resulted in AAAM’s membership growing from some 17 members in 2020 to the current 63 members.

Martina Biene, Chairperson and Managing Director of VWSA, who is also responsible for the Africa Region, has over 20 years of experience in the automotive industry having joined Volkswagen in 2001 where she held multiple roles in the company in Sales, Marketing, Product Planning and Product Marketing for Luxury Vehicles and the Volkswagen Brand in Germany, Belgium, Luxembourg, and South Africa.

In 2018 she was appointed as the head of the Volkswagen Brand in South Africa whereafter she returned to Germany in 2020 to take up the position of Head of Small and Compact Vehicle line up, returning to South Africa in November 2022 to take up her current position.

“I became passionate about Africa after completing an internship in Cape Town before joining Volkswagen in Germany. My career has allowed me to return to Africa to help with the industrialisation of Africa through the automotive industry which will help to create opportunities and sustainable jobs. I am thankful for the work that Mike and the AAAM team have done to date and I am humbled to be able to play a key role through AAAM to grow the automotive manufacturing industry from the 1.1 million vehicles a year today to some 3.5 million or even 5 million by 2035.” said Biene after being voted into her new position by the voting the members of AAAM.

Martina Biene
Martina Biene, Chairperson and Managing Director of VWSA

The Executive of AAAM is as follows:

President Martina Biene, Chairperson and Managing Director of VWSA
Past President Mike Whitfield, Managing Director Stellantis South Africa
Vice President Andrew Kirby,  President and CEO of Toyota South Africa Motors
Vice President Markus Thill,  President Region Africa, Robert Bosch
Vice President Jeffrey Oppong Peprah, CEO of Volkswagen Ghana
Vice President Dr Ahmed Fikry, Managing Director for East Port Said for Main Development Co. (EP) and Managing Director for Egyptian German Automotive Co. (EGA)
Chief Executive Officer Dave Coffey

Baakens Valley Cluster establishment underscores power of collaboration

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The Nelson Mandela Bay Business Chamber’s eighth geographic cluster, The Baakens Valley Cluster, was established yesterday when businesses in the area came together to align and organise themselves into a united entity. This underscores the power of collaboration and provides a platform for businesses represented within the new cluster to collectively identify challenges within their geographical area for resolution. 

During the last few years, the Baakens Valley has gone through a major developmental phase where some of the city’s recognisable brands in the entertainment and hospitality industries have injected much-needed energy into the area, making it one of the city’s preferred hotspots. 

The formalisation of the cluster paves the way for key priorities to be identified and action plans to be developed, and responded to in partnership with existing structures within the area, such as neighbourhood watches for safety and security, and other relevant stakeholders.

The establishment of the cluster resulted in the appointment of an executive structure, with Remo’s owner Dante Cicognini being nominated as Chairperson. Other appointments included Algoa FM’s Desire Pratt as vice chairperson, Ian Whittle from Grindestone as Treasurer and Engineering Hub’s Wesley Augustyn, as Committee member. 

The clustering approach is an initiative of the Chamber, which over the last year has facilitated the establishment of various sectoral and geographical clusters geared towards representing the needs and interests of business, with the primary focus of retaining much-needed investment and jobs in the Bay. 

Over the past year and a half, the Chamber has facilitated the establishment of the Deal Party, Beachfront, North End, Perseverance, Struandale, Neave/Korsten and Kariega clusters, which have successfully developed action-orientated strategies to effectively respond to challenges they are faced with such as safety and security, illegal dumping, cleanliness, vandalism, potholes and other issues.

The newly appointed chairperson Dante Cicognini said that he believed the business cluster in the valley needed to prioritise safety and security and cleanliness as their initial focus areas.  

“The valley is an intricate part of our city and we believe that it needs to be looked after. We believe it can create its own revenue income streams and we will try and tackle that as businesses in the area, by also aiming to revive our culture in the city. The area is home to around 7 landlords and 27 businesses,” said Cicognini. 

Chamber chief executive officer Denise van Huyssteen said the coming together of businesses within the Baakens Valley area was key in enabling the area to untap its true potential. Tremendous leisure, entertainment, sports and recreational and nature orientated opportunities can be unlocked if the cluster and key stakeholders in the Bay work together, with this common vision driving their actions.   

“As the Chamber, we have taken a proactive approach where we focus on what is within our spans of influence to constructively address some of the challenges facing the city, instead of pointing fingers and complaining from the outside. The clustering approach provides a basis through which all relevant stakeholders can come together and share resources and ideas to positively impact the trajectory of this city. As such, we are excited as the Chamber that businesses in the Baakens Valley recognise the importance of working as a collective to preserve what the area has to offer and to position it as an attractive destination for potential investment inflows and job creation,” said Van Huyssteen.

Earlier this year, the Chamber and the Nelson Mandela Bay Municipality signed a broad memorandum of understanding, which has paved the way for businesses to partner with the metro to implement solutions in response to the multiple challenges in the operating environment. The geographical clusters, with their collective resources, are well positioned to drive action and to achieve positive impact, which has a knock-on benefit in their immediate surrounding areas.

NMBBC Baakens Cluster
Back Row: Chamber CEO Denise van Huyssteen, Ian Whittle (Treasurer – Baakens Valley Cluster), and Ashwin Daya, (Chamber’s Chief Operations Officer). Front Row: Wesley Augustyn (Commitee Member – Baakens Valley Cluster), Dante Cicognini (Chairperson – Baakens Valley Cluster) and Desiree Pratt (Vice-Chair – Baakens Valley Cluster)

10 Time Environmental Winner

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Gqeberha – Volkswagen Group South Africa became the proud 10-time recipient of the SJM Flex Environmental award at the 28th annual Exporters Eastern Cape awards on Friday, 20 October 2023.

The SJM Flex Environmental award, which is given to an ISO 14001-accredited exporter who pursues excellence in environmental management, went to VWSA for the 10th time. VWSA last won this award in 2022. In addition to this award, VWSA received a merit award in the Best Exporter – OEM category.

The SJM Flex award follows on the heels of VWSA’s recent Lean & Green Management award, also received in recognition of its environmental sustainability initiatives.

“VWSA prides itself in its strong presence in the Eastern Cape, both as an economic contributor and an environmentally responsible corporate citizen,” said Martina Biene, VWSA Chairperson and Managing Director. “These accolades serve as recognition for the efforts of every employee at VWSA, and it is an honour to receive this recognition on behalf of the team.”

Exporters Eastern Cape has been operating in the Eastern Cape for 43 years and is aimed at organisations involved in exporting, either directly or indirectly, and for organisations with an interest in exporting. These organisations represent industries such as automotive, pharmaceutical, agriculture and services. The judges for the Exporters Eastern Cape Awards come from varying backgrounds and sectors.

VWSA Exporters Environmental Award
Quintin Levey (Exporters Eastern Cape), Andile Mahlati (VWSA), Vernon Naidoo (VWSA), Zelda Lourens-Strydom (VWSA), Nick Chapman (VWSA), Reabetsoe Kgoedi (VWSA), Martina Biene (VWSA), Andile Dlamini (VWSA) and Antonio McMaster (awards judge).

S4 pulls off a hat-trick as the 2023 Exporter of the Year

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Exporters Eastern Cape’s 2023 Exporter of the Year winners were announced on Friday evening (20 October) at a spectacular gala event at the Boardwalk Hotel and Convention Centre in Gqeberha.

A highlight of the evening was the announcement of the Overall Exporter of the Year Winner, which this year went to S4, a Gqeberha-based turnkey automation and machine building solutions company.

S4 also achieved this prestigious title in 2018 and 2020.

Speaking on how S4 managed to increase their export turnover by 118% and their profitability by 125% over the period under review, S4 Marketing Manager Gideon Smith said the success was due to the automation division that had grown internationally.

“Previously we were mostly focussed on software exporting, but this year we have exported international automation as well. Those are larger valued projects and that is the main reason for the growth in profits,” said Smith.

S4 exports to Switzerland, Germany, Belgium, China, the United Kingdom, Mexic
and the USA; and started exporting in 2008. Their recently opened sales office in Germany also assisted in creating new opportunities in the European market for the proudly Eastern Cape company.

“We are humbled by the awards that we have won. We want to thank our team members back home for their hard work and dedication. Thank you to our partners from the European side and all our customers,” said Smith.

The theme for the event was “futuristic” which fitted perfectly with S4’s fully integrated 4IR focus on virtual reality, augmented reality, remote monitoring and diagnostics, as well as the company’s expansion into the Electric Vehicle (EV) and energy storage sectors.

Exporters Eastern Cape Chairman Quintin Levey congratulated all the winners who achieved incredible successes despite the tough economic conditions in the country and the turmoil in the world. He encouraged the exporters to continue looking for new opportunities and growth in the different sectors and industries they represent.

Levey also thanked all the stakeholders who had supported Exporters Eastern Cape over the past year, including the sponsors of the Exporter of the Year Awards.

Standard Bank Head of Client Coverage and Business Clients in the Eastern Cape, Leigh-Anne de Witt, explained why Standard Bank was honoured to be the Platinum Sponsor for the awards this year. “We are proud to be associated with this event and the successes of the exporters who will be acknowledged here tonight,” said De Witt.

Other sponsors included Gold Sponsors Volkswagen Group SA and OM & Barker; Silver Sponsors Kingfisher FM and Isuzu Motors South Africa; Bronze Sponsor IDC; Blue Sponsor SJM Flex SA (Pty) Ltd; and Media Sponsor: The Herald.

From left are Quintin Levey (Exporters Eastern Cape), Ettienne Gerwel (S4), Ryan Smith (S4), Gideon Smith (S4), Deon Joubert (Exporters Eastern Cape) and Leigh-Anne de Witt (Standard Bank)

Congratulations to all the 2023 Exporters Eastern Cape category winners:

  • Merit Award for the SJM Environmental Award – Lumotech.
  • Merit Award for the SJM Environmental Award – Isuzu Motors South Africa.
  • Winner of the SJM Flex Environmental Award – Volkswagen Group South Africa.
  • Merit Award for the IDC Job Creation Award – S4.
  • Winner of the IDC Job Creation Award – Lumotech.
  • Merit Award for the Best Service Provider of Services to Exporters – Toyota Industrial Equipment (recognised for Innovation).
  • Winner of the Best Provider of Services to Exporters – BLG Logistics of South Africa.
  • Merit Award for the Best Small Business Exporter – Microcare Solar (recognised for Innovation).
  • Winner of the Best Small Business Exporter – Marina Sea Salt.
  • Winner of Best Medium Enterprise Exporter – S4.
  • Merit Award for Best Corporate Exporter – Lumotech (recognised for New Contracts).
  • Merit Award for Best Corporate Exporter – Purem Port Elizabeth.
  • Winner of Best Corporate Exporter – Shatterprufe.
  • Merit Award for the Best OEM Exporter – Volkswagen Group of South Africa (recognised for Capital Investment).
  • Winner of the Best OEM Exporter – Isuzu Motors South Africa.

Kariega plant chosen as overall environmental winner in Automotive OEM category

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Kariega (Uitenhage) – For their excellent practices in the spheres of lean working models and environmental sustainability, Volkswagen Group South Africa (VWSA) has been honoured with an international Lean & Green Management award.

The annual awards, which is an initiative of the German-based T&O Group, evaluates all participating companies in terms of sustainability and lean management. Over 130 companies participated in the 2023 iteration of the awards. Following an intensive selection process including a questionnaire and assessments, winners were selected by a jury of representatives from science, business and media.

This year’s awards were held in Pfronten in Germany on 19 October, where VWSA’s Kariega plant received the overall award for the Automotive OEM category. In the feedback received from the jury, VWSA was praised for its 2Y24 Production and Logistics strategy, which incorporates lean working and environmental initiatives as priorities.

Among the strengths listed in the Lean evaluation were the company’s value stream mapping process, long-term planning, and its Shop Floor Management system for swift reporting and problem solving in the production environment. The judges also commended the company for its focus on resource management, particularly water and energy, and its waste reduction projects in Production.

VWSA’s environmental projects range from a wastewater recycling facility and rainwater harvesting, to solar panels on the roof of its Final Assembly building, to a proactive biodiversity roadmap.

As part of their Zero Impact Factory environmental management programme, VWSA achieved the following reductions in 2022 (compared to the baseline set in 2010):

  • 49% reduction in energy use
  • 52% reduction in CO₂ emissions
  • 68% reduction in water use
  • 73% reduction in waste
  • 32% reduction in solvent emissions
  • 53,4% reduction in overall environmental impact

“At Volkswagen Group South Africa, lean and green is a way of life,” said Ulrich Schwabe, VWSA’s Production Director. “That is why we are honoured to receive the Lean & Green Management Award, in recognition of our efforts. Our achievements are the result of every employee sharing our commitment and we are thankful that we have been able to do our part in building a more environmentally sustainable future, for our company and our community.”

Coega SEZ a blueprint for SEZs in rest of Africa

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Gqeberha, South Africa, 19 October 2023 – As African countries pursue sustainable opportunities for economic development and job creation, importance is placed on maximising local resources and industrial strengths. Recently, the City of Bulawayo, Zimbabwe’s second largest city and once an industrial powerhouse, visited the Coega Special Economic Zone (SEZ) as part of a week-long benchmarking tour to South Africa’s most reputable industrial and economic zones. The visit was organised through the department of trade, industry, and competition (the dtic).

“As a designated SEZ in Zimbabwe, the City of Bulawayo travelled to South Africa, to learn from successful SEZs as part of preparations for the development our own SEZ. Our visit was facilitated by SEZ Africa,” said City of Bulawayo Town Clerk, Mr. Christopher Dube.

The visit included a detailed presentation of Coega’s development and performance since inception in 1999, its expansion strategy, and a guided tour through the fourteen (14) Coega SEZ clusters.

“The tour exceeded our expectations. It has been a fruitful day. We are trying not to reinvent the wheel but to learn from those who are ahead of us. Thank you for the exposure – we have learnt a lot,” said Mr. Dube.

Programme Director for Client Solutions, Dr. Siyabonga Simayi, emphasised the value of cross-sector engagements between like-minded organisations. “At Coega, we believe in the power of collaboration, knowledge-sharing, and learning, to build strong and prosperous communities and the Continent. The objective of this engagement was to foster mutually beneficial partnerships and explore potential synergies by sharing valuable knowledge and experiences in economic development.”

The Coega SEZ’s remarkable success stands as a testament to what visionary planning, strategic positioning, and unwavering commitment can achieve, providing a blueprint for the development of SEZs across the African continent.

Mr. Idriss Mouchili, Director of the Coega Africa Programme, shared: “The establishment of special economic zones is a critical catalyst for economic growth, industrialisation, and development. The knowledge shared and the strategies discussed during this visit will play a pivotal role in shaping the future of the City of Bulawayo.”

The Coega SEZ’s robust infrastructure, competent personnel, commitment to good governance, and effective partnerships are a few of the qualities that have led to its success. By drawing upon these lessons, others can unlock their own SEZ potential, driving economic growth and job creation.

Mr. Mmeli Mdluli, Managing Director of SEZ Africa, stated the overarching aim of the visit: “We want to ask questions, find relevant solutions, get down to work, and implement. We are here as students, to learn, explore synergies, become partners. At SEZ Africa, we are committed to transforming the city into a vibrant SEZ, and this visit has been an invaluable step in that direction.”

Through the flagship Coega Africa Programme, Coega has expanded its non-SEZ services to African markets including Zimbabwe, Nigeria, Cameroon, Central African Republic, and Senegal. “In the pursuit for economic transformation and sustainable growth, the Coega SEZ stands as a beacon of hope and a model for development not only in South Africa but also across the African continent, in support of the African Continental Free Trade Area (AfCFTA),” concluded Simayi.

Coega Vulindlela Elevates Accommodation and Conferencing Services

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The Coega Vulindlela Accommodation and Conference Centre offers a wide range of event solutions and value-added services.
Gqeberha, South Africa, 18 October 2023 – The award-winning Coega Vulindlela Accommodation and Conference Centre (the VACC), situated in the heart of Gqeberha in close proximity to Africa’s leading and preferred investment destination, the Coega Special Economic Zone (SEZ), and known for its world- class amenities, versatile event spaces, comfortable lodging and convenient location, welcomes new business and growth, notwithstanding a few challenging years for the hospitality sector, not just in South Africa, but the rest of the world.

The Coega VACC has adapted to the evolving needs of its valued clients, in terms of the increased demand for face-to-face and hybrid events following the COVID- 19 Pandemic. The widely acclaimed 450-bed lodging capacity was expanded by an additional 100 beds, reflecting the Coega VACC’s unwavering commitment to continuous improvement, service quality and customer satisfaction.

Recent patrons who have enjoyed the hospitality of the Coega VACC included the Ministry of Transport; Kea Projects: Orion Rig Repair in the Coega Harbour; Siyawela Travel; National Union of Metalworkers of South Africa; Harvey Travel; Attwell Madala High School; Department of Sport, Arts and Culture; Athletics Transkei; Travel with Flair, Imbeko Travel; and Weidplas South Africa, amongst others, generating R20 million for the facility during the first half of the 2023/24 financial year.

Ms. Miliswa Filtane, Government Sales Manager at the Coega VACC, shared her pride regarding the achievements and level of service provided by the VACC: “We are immensely proud of what we have been able to achieve, which showcases our dedication to providing top-tier services and experiences to our clients. Our team has worked tirelessly to create memorable experiences and deliver exceptional services, resulting in an increased demand for our facilities and services.”

A few of the solutions offered by Coega VACC include conferencing, catering, gala events, and special occasions.
The VACC’s facilities include on-site catering, secure parking, 24-hour access- controlled security, modern equipment for high-tech presentations, on-site accommodation that includes bed and breakfast, long-term leasing, wheelchair accessibility, and shuttle services. The Centre also provides superb communal accommodation for non-local employees of businesses operating within the Coega SEZ and surrounds, as well as recreational amenities, including a soccer field, tennis court, squash court, and netball facilities. Furthermore, the versatile venue boasts conference facilities with the capacity to host up to 1000 delegates, rendering it the ideal choice for organising large-scale events, particularly for government departments.

Mr. Ridwaan Davids, Unit Head: Estate Management, emphasised: “Our steadfast commitment to excellence has consistently set us apart as leaders within the industry. From our elegantly designed and comfortable rooms to spacious and affordable conference facilities, the Coega VACC consistently raises the bar for accommodation and event hosting. Our goal is to ensure that the VACC maintains its position as the ultimate preference for discerning travellers and event organisers.”

The Coega VACC stands as a preeminent destination for travellers in search of the perfect blend of convenience and service, providing secure and comfortable lodging. Notable achievements for the VACC include the provincial award for Meetings, Exhibitions, and Special Events (MESE) in 2017, falling under the three- star category for Service Excellence. Additionally, the VACC was a provincial finalist for the two-star Guest House Service Excellence Award in the accommodation category.
“At the VACC, we have always championed the delivery of excellence, and this achievement reflects our dedication to providing the utmost experience for our esteemed guests. We eagerly anticipate continuing to establish the benchmark for hospitality in Gqeberha,” concluded Ridwaan.

Ford’s Struandale Engine Plant Celebrates Major Production Milestones

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  • Ford’s Struandale Engine Plant celebrates production of its 4-millionth engine since the plant opened in Gqeberha (formerly Port Elizabeth) in 1964
  • Total of 300 000 2.0L Single Turbo and 2.0L Bi-Turbo engines produced since program was launched in 2018
  • Struandale plant currently produces three diesel engines: 2.2L/3.2L Duratorq TDCi introduced in 2011, 2.0L SiT/BiT that commenced in 2018, and 3.0L V6 Diesel engine launched in 2022 for the new Ranger

GQEBERHA, SOUTH AFRICA, 17 October 2023 – Ford’s long and proud history in South Africa is inextricably linked to the city of Port Elizabeth (now known as Gqeberha) – after all, it’s where Ford Motor Company of South Africa was founded in 1923.

Some 41 years later, Henry Ford II officially opened the Struandale Engine Plant. With an investment of R8-million in the new facility at the time, it positioned Ford as the first motor company in South Africa to manufacture engines locally, and it has played a central role in Ford’s manufacturing and export operations ever since.

At the end of August 2023, the Struandale Engine Plant produced its four-millionth engine – a 2.0-litre four-cylinder Bi-Turbo diesel engine that will be installed in a new Ranger bakkie (pickup) at Ford’s Silverton Assembly Plant in Pretoria. The Ranger is produced for domestic sales and exports to more than 100 global markets, with an installed capacity for producing up to 200 000 vehicles per year. This makes Ranger one of South Africa’s leading vehicle exports, with 45 793 vehicles exported between January and September 2023 – all powered by engines supplied by the Struandale plant.

Fittingly, this major milestone also coincides with the 300 000th 2.0L Single Turbo/Bi-Turbo diesel engine being produced at Struandale since this program was launched in 2018. This engine family is revered for its impressive performance, reliability and fuel economy, with the Single Turbo version powering Ranger to its class win in the 2019 WesBank Fuel Economy Tour. The 2.0-litre engines were updated in 2022 for the new Ranger with further improvements in noise, vibration and harshness (NVH) for even greater comfort and refinement.

The Struandale Engine Plant also produces the 2.2L and 3.2L Duratorq TDCi engines that were introduced in 2011, as well as the new 3.0L V6 Diesel engine that powers the range-topping models in the new Ranger line-up, with production commencing in 2022 following a R600-million investment.

“The Struandale Engine Plant has been instrumental in Ford’s development and growth over the past 59 years, particularly for our export operations. The four million total engine production, along with the 300 000 2.0L Single Turbo and Bi-Turbo diesel engines assembled to date, are remarkable achievements,” says Ockert Berry, VP Operations, Ford South Africa.

“Our plant in Gqeberha remains a cornerstone of the automotive industry in Nelson Mandela Bay and is a vital part of our local manufacturing operations. Our major investments in this facility, in the Silverton Assembly Plant and at our suppliers in the Tshwane Automotive Special Economic Zone for the new Ranger have confirmed Ford’s commitment to South Africa, supporting much-needed job creation and economic development for the country,” Berry says.

“We have an installed capacity for producing 720 vehicles per day running on three shifts to meet the global demand for Ranger, but we already exceeded that target twice in August this year with peaks of 736 and 737 vehicles,” Berry says. “This is not only the highest production we’ve achieved for the Silverton Assembly Plant, but is a record for the South African motor industry. And, with all the engines used in our locally assembled Ranger coming from Struandale, it’s a major achievement for both of our plants.”

To date the Struandale plant has produced 11 different engine types, starting off in 1964 with the 1.7L and 2.0L V4, the much-loved Essex V6, as well as the 1.3L and 1.6L Kent four-cylinder engines.

One of its most successful programs was the component machining and assembly of the renowned RoCam engine, starting with the 1.6-litre version in 1998. The following year the Struandale plant was appointed as the sole global manufacturer of the 1.3L RoCam, which contributed to total production for this engine family concluding on 1 346 919 units when the program ended in 2012. The RoCam engines powered several popular South African-built models, such as the Fiesta, Ikon and Bantam. They were also exported to numerous countries including Argentina, Brazil, China, Germany, India, Italy, Mexico, Spain, Russia and Venezuela.

Interestingly, the one-million engine mark was reached in 23 years (1987), with the two-millionth unit following 19 years later in 2006. With the significant investments and expanded production for the RoCam and Duratorq TDCi engine programs accelerating the plant’s output, it reached three million engines just eight years later in 2014, with the four-millionth unit emerging from the Struandale Engine Plant after a further nine years, in August 2023.

Local innovation

Innovation and creative thinking have been consistent hallmarks of the Struandale teams over the years, with production of the new 3.0L V6 Diesel being a perfect example, according to Shawn Govender, Plant Manager of the Struandale Engine Plant. “The assembly line that produces the 3.0L V6 turbodiesel engine for the new Ranger still assembles our existing Duratorq TDCi engines, making it the only facility of its kind in the Ford world that produces both V-configuration and in-line engines, as well as a combination of four, five and six-cylinder units, all on a single line,” he says.

“The combined assembly line was essential to make optimal use of our facilities and contain the total investment required, and to ensure that we are competitive from a cost-per-unit perspective,” Govender says. “This was an extremely complex challenge for our team, but they delivered on all our ambitious targets. The success and huge demand for the 3.0L V6 Diesel engine in the new Ranger is testament to our unwavering focus on producing engines of the highest quality for our customers, and no doubt contributed to it being selected as SA Car of the Year for 2023.”

Relying on a flexible production format, with scheduled batches of the two different engine programs being assembled, the line incorporates 40 stations that are common to both platforms and a further 25 stations that are unique to the 3.0L V6 Diesel. The total installed capacity for this line is 130 000 engines per year.

In addition to assembling the 3.0L V6 Diesel, the Struandale plant machines the cylinder heads for this engine. For the Duratorq TDCi engines, the cylinder head, cylinder block and crankshaft are also machined on-site.

The 2.0L SiT/BiT engine assembly line has an installed capacity for 120 000 units per year, resulting in a total capacity of up to 250 000 engines per annum for the Struandale Engine Plant – a massive leap from the 30 000 engines it could produce when the plant first opened.

The Struandale Engine Plant currently has around 850 employees, with a total of approximately 5 500 people employed by Ford South Africa – almost double the 2 700 jobs it provided in 1964.

Last year the Struandale Engine Plant won the overall 2022 Exporter of the Year title and the Best Exporter OEM award from Exporters Eastern Cape. “This was a huge accolade and provided well-deserved recognition for our dedicated team. It was made possible by our ongoing investment, unwavering commitment to quality, continuous improvement and innovation,” Govender says.

“We have placed a lot of emphasis on job creation and supporting the surrounding communities with skills development and training through our extensive learnership, apprenticeship and experiential trainee programs, and providing upliftment and empowerment opportunities to help break the cycle of poverty through our wide range of CSR projects,” Govender states.

Aside from the current component machining and engine assembly operations, lesser known are the numerous other products that were manufactured at Struandale over the years. This included wheel hubs, brake discs and drums, engine inlet and exhaust manifolds, water and oil pumps, conrods and flywheels. It was also responsible for the remanufacturing of Ford’s Dorset diesel truck engines and the Essex V6 and CVH petrol engines, along with remanufactured power steering racks and automatic gearboxes for the Cortina and Granada.

Ford Struandale Engine Plant
Aerial View of the Ford Struandale Engine Plant

Coega Receives Clean Audit Report from the AGSA for the Fourth Consecutive Year

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Gqeberha, South Africa, 11 October 2023 – The Coega Development Corporation (Coega) welcomes the report of the Auditor-General of South Africa (AGSA) included in its Integrated Annual Report for the 2022/2023 Financial Year (FY), in which the organisation received a Clean Audit Report for the fourth consecutive year, says Mr. Rodger Hill, Coega’s Chief Financial Officer.

This report signifies that Coega’s financial management practices adhere to the highest standards of transparency and accountability, reassuring tenants, stakeholders, partners, and clients, and boosting public confidence in general. Such recognition reflects the concerted efforts made by Coega’s finance team, management, and employees to maintain strict compliance with applicable legislation and financial regulations, as well as the optimal use of resources. By attaining yet another clean audit, Coega has reinforced its reputation as a reliable and trustworthy entity, positioning itself as an attractive partner for local and global investors and stakeholders.

The Clean Audit Report follows good performance by the organisation. During the year, Coega secured nine (9) new investors, with a combined investment value of R1.224 billion, underscoring the Coega Special Economic Zone (SEZ) as a preferred investment destination, and leader in African SEZ operations and development. These investments span various sectors, including logistics, agro-processing, chemical, and general manufacturing clusters. Additionally, Coega has made a substantial contribution to job creation during the financial year, contributing a total of 15 222 jobs created (5 844 construction and 9 378 accumulative operational jobs). Furthermore, the organisation trained over 3 932 people.

In terms of both SEZ and non-SEZ programmes, the organisation generated an impressive overall revenue of R609.3 million. To-date, Coega is home to 58 operational investors across diverse sectors (and growing), with a combined investment value of R11.96 billion. Notably, the Coega SEZ stands out as a preferred investment destination, with approximately 31% of investments being Foreign Direct Investment (FDI), ranging from small, medium, and micro enterprises (SMMEs) to large global exporters. Coega has also excelled in SMME procurement spend, achieving a remarkable 47.93% for the 2022/23 FY, in line with its vision to be a leading catalyst for the championing of socio-economic development. In addition, Coega has achieved a Level 1 B-BBEE certificate, improving from Level 3, last year.

The Corporation’s good performance is a result of its position as a plug and play investment destination, diversification strategy in terms of revenue generation, market development into the African continent, and its reputable global brand image. The Corporation’s focus is centered on achieving impact and outcome statements, namely, financial sustainability, increased strategic economic advantage for targeted industries, and economic opportunities for the marginalised.

Looking ahead, Mr. Rodger Hill expressed confidence about the current financial year’s performance: “Coega has already signed four (4) new investors with an investment value of R385 million in the first quarter (April to June 2023), while in September the Stellantis Group confirmed a R3 billion investment set to be operational in early 2026 in line with the Group’s Dare Forward Strategy. The CKD plant is earmarked to manufacture 50 000 vehicles, with capacity to achieve 90 000.

Coega is optimistic about its forecasted performance for the remaining six months of the financial year to March 2024, as the organisation continues to be engaged in various government infrastructure development and maintenance projects throughout South Africa, and other projects throughout the continent as an Implementing Agent of Choice.”

Sustaining a clean audit signifies that Coega has maintained the financial controls and systems, whilst reducing the likelihood of financial irregularities, fraud, and mismanagement. By upholding financial discipline, Coega not only mitigates financial risks but also aligns with international best practices, establishing a solid foundation to stimulate sustainable economic growth and development. This creates an opportunity for the organisation to assist other state-owned entities and government departments to achieve the same.

Coega remains steadfast in the implementation of its Five-year Strategic Plan 2020/21 – 2024/2025, endorsed by its shareholder and Board of Directors, and supported by partners and stakeholders, concludes Hill.

60 Health Infrastructure Development Projects Worth R7 Billion

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The Coega Development Corporation (Coega) continues to play a pivotal role in advancing infrastructure development as a key priority of the South African Economic Reconstruction and Recovery Plan. Based on 24 years’ expertise in infrastructure delivery, and with projects underway across the country and into Africa, Coega has demonstrated remarkable success spearheading infrastructure development and maintenance projects for public health, education, and other programmes by virtue of its vision and competence. A significant achievement lies in Coega’s ability to integrate economic opportunities within the execution of these projects, thereby fostering growth and prosperity in local communities.

Coega’s Infrastructure Programme, which includes the Department of Health (DoH) Infrastructure Portfolio, has to date, been involved in the delivery of more than 60 health- related infrastructure projects to an approximate value of R7bn. More than 10 000 jobs have been created on the Portfolio. The DoH Infrastructure Portfolio plays a critical role in enhancing public spaces to promote inclusive socio-economic development and related outcomes, and is informed by the National Development Plan Vision 2030 and the National Infrastructure Plan 2050.

In the socio-economic context, development refers to the improvement of lifestyles through employment, skills development, education, and income amongst other factors. Through effective project management, Coega has revolutionised the way projects are executed, impacting communities in terms of benefit realisation. The R680-million Sipetu District Hospital, for example, is one of the three recently opened healthcare facilities, with the Coega Development Corporation fulfilling its role as Trusted Implementing Agent of Choice, alongside the Khotsong TB Hospital and Meje Community Health Centre.

Collectively, the three facilities awarded SMMEs contracts to the value of no less than R275m.

As a public entity and an Implementing Agent of Choice, Coega holds itself to strict account when placing socio-economic development and inclusive growth at the forefront of infrastructure development, and the DoH Portfolio is no exception. The participation of SMMEs is a standard imperative, with opportunities earmarked for local entrepreneurs by way of designated target areas. The Coega SMME Programme facilitates the growth of small to medium size businesses during the construction process while artisans are recruited and upskilled through the Coega Skills Development Centre.

Since the inclusion of the SMME Programme in the DoH Portfolio in 2007, Coega has seen hundreds of SMMEs benefit from large infrastructure projects. The experience that local SMMEs gain from these projects equips them with the expertise required to provide specialist maintenance services for healthcare and other state-owned facilities in the future.

The maintenance of infrastructure is also integral to achieving improved health outcomes, and thus quality of life, for communities.Coega’s DoH Infrastructure Portfolio is equipped with a highly skilled team that has acquired the experience needed to deliver contemporary facilities to enable the delivery of healthcare services to previously underserved communities.

Recent milestones include the official launch of the ultramodern 100 bedded Sipetu District Hospital in Ntabankulu, equipped with general wards, maternity wards, tuberculosis (TB) wards, and a paediatric ward; theopening of the Khotsong TB Hospital in Matatiele as a specialised centre for the diagnosis, treatment, and care of TB patients equipped with state-of-the-art medical facilities; and the opening of the Meje Community Health Centre in Bizana, all completed by providing local employment opportunities.

In response to the evolving socio-economic needs of South Africa, Coega has emerged as a trailblazer in infrastructure implementation and maintenance, complementing its role as Africa’s leading operator and developer of the 9003ha Coega SEZ, which is also a gateway to Africa and World markets. From project inception to completion, Coega remains steadfast in its vision to be a leading catalyst for the championing of socio-economic development.