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Eastern Cape Automotive Cluster launched

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The Eastern Cape automotive cluster support initiative was launched today in Port Elizabeth. Announced by the MEC for Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) Mcebisi Jonas earlier this year, the aim of the cluster is to drive a series of priority regional interventions to support the sector. The Eastern Cape is home to four of the country’s Original Equipment Manufacturers (OEMs) – General Motors, Volkswagen, Mercedes Benz and Ford and the local supply chain consists of some 80 major automotive suppliers with 1 500 companies in the whole automotive value chain employing 30 000 workers in areas ranging from manufacturing to service station operations.

In addition, the OEMs employ 10 400 workers bringing total auto sector related employment in the Eastern Cape to some 40 000 workers. The Eastern Cape Automotive Cluster Support Initiative is a partnership between the public and private sector which seeks to promote the development of the automotive sector in the Eastern Cape. The launch of the initiative will outline the key principles underlying the initiative as well as the core initial

The Minister of Trade and Industry Hon Rob Davies delivered the key note address during the launch.

Kevin Hustler, CEO of the Nelson Mandela Bay Business Chamber, commented: “The automotive sector is the backbone of manufacturing in the Eastern Cape, with a massive multiplier effect through the manufacturing value chain and across numerous other sectors. As a major employer, paying salaries which are spent in the local economy; a payer of rates and taxes; and both a supplier and a customer across a wide range of goods and services, the automotive industry is vitally important to the sustainability of this region. As noted by the speakers at today’s launch, the sector faces several key challenges driven by global economic and environmental change. The development of an auto cluster has the potential to drive down costs in the sector, thus making it more globally competitive and able to face the challenge of world production moving to low-cost countries, through pursuing cooperation that should lead to increased efficiencies and productivity.

“A solid foundation has been laid for the cluster through the engagement of all the relevant role players, and it is now up to those role players to turn the plans announced today into reality.”

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.