A cluster of automotive component and related manufacturers announced investments totalling close to R5 billion into the domestic economy on the final day of the NAACAM show which took place in Gauteng last week.
Several of the investment commitments, which will all be realised between now and December 2024, are from companies with significant business operations located in Nelson Mandela Bay, including Acoustex, CRH Africa, Ebor, Formex, Purem, and Shatterprufe. Asof today R105 Million has been confirmed for Nelson Mandela Bay.
NMBM Executive Mayor, Cllr Gary van Niekerk SAID, “This is fantastic news for Nelson Mandela Bay, as it reaffirms the Automotive industry’s confidence in Nelson Mandela Bay as an investment destination. Many automotive companies and component manufacturers are committing to doing business in our region, employ local people, and develop black- and women-owned businesses.
It thus becomes essential for Nelson Mandela Bay to host the next edition of the NAACAM show in order to report back to industry on the projects that government are currently undertaking to create a more conducive environment that enables manufacturers to produce and to export.”
For commercial reasons, the details of a few of these investments are still under wraps. Andre Swartbooi, Commercial Director of Acoustex, was able to confirm that the company would be investing in excess of R25 million in its metro-based operations whilst Formex Chief Executive, Hennie Venter, announced that R80 million would be invested in its business in Nelson Mandela Bay.
Formex has grown its workforce by 124 employees over the last three years and already invested close to R200 million in its local operations. The company hosted the NMBM’s Economic Development, Tourism and Agriculture standing committee at its Struandale plant earlier in April this year, where the impact and value of the City’s business investment incentives where shown first-hand.
Nelson Mandela Bay MMC for Economic Development, Tourism and Agriculture, Cllr Shuling Lindoor confirmed “it is our responsibility as local government to ensure that we enable ease of doing business and enable trade and investment in Nelson Mandela Bay. It’s critical we work together with industry to create jobs, upgrade and fix infrastructure through innovation that improves our supply of electricity, mitigation of loadshedding through the use of a 24-hour schedule for industrial users, and by enforcing traffic rules and fixing traffic lights, street lights and potholes in our industrial precincts which are investment-ready.”
The metro’s automotive industry was well represented at this year’s National Association of Automotive Component and Allied Manufacturers (NAACAM) show, with close to a third of the 100+ exhibitors coming from Nelson Mandela Bay, including the metro’s Export Helpdesk which helped eligible small businesses to attend and exhibit.
Whilst addressing the conference delegates, Deputy Minister of Finance, David Masondo, confirmed that the automotive sector is a mainstay of SA’s industrial economy, contributing 4.9% to GDP in 2023 and also reiterated the current strategy to increase South African domestic production of components to 60% by 2035, under the Automotive Master Plan.
During the NAACAM Show, Transnet group chief executive, Portia Derby, also presented plans affecting the automotive sector including Project Ukuvuselela; the expansion of the existing ‘SouthCor’ rail infrastructure to transport more fully built vehicles to the Port of Port Elizabeth for export. It is anticipated that the turnkey engineering, procurement, and construction (EPC) contract will be awarded by November 2023 for implementation.
NMB Communications
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