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OVERVIEW

Automotive Durban hosts the first NAACAM Show.

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s part of attempts to boost the city of Durban as a destination for automotive investment, the first National Association of Automotive Components and Allied Manufactures (NAACAM) Show was held in Durban in April 2017. Future events will rotate between other major centres in South Africa. In line with the policy of developing Industrial Economic Hubs, the Durban Automotive Supplier Park is being built at Illovo, south of Durban and near to the Toyota plant. An amount of R11.5-billion will be invested in three phases, with the first allocation amounting to R4.3-billion. The Dube TradePort Corporation will manage the project, which covers 1 013ha. Other partners are the eThekwini Municipality, Toyota and the provincial government. The aim is to attract car assembly and component manufacturing companies. Thirty-nine companies are currently members of the Durban Automotive Cluster which is funded by the municipality. Together, these firms have about 17 000 employees.  In 2016, Toyota invested a further R6.1-billion into its already large plant at Prospecton. The company regularly sells about a quarter of the vehicles sold in South Africa, and the same proportion of exports volumes. The Corolla car, the Hilux bakkie and the Fortuner SUV are manufactured at the plant. KwaZulu-Natal’s other automotive giant is Bell Equipment. Between the Toyota plant at Prospecton south of Durban and the Richards Bay facility of heavy-equipment manufacturer Bell Equipment, upwards of 11 000 people are employed: both companies are market leaders. The sector accounts for 17.7% of the province’s export basket. The province also has a substantial and varied automotive-supply sector. Trade and Investment KwaZulu-Natal (TIKZN) estimates that

CONTACT INFO Automotive Industry Export Council: www.aiec.co.za National Association of Automotive Component and Allied Manufacturers (NAACAM): www.naacam.co.za National Association of Automobile Manufacturers of South Africa (NAAMSA): www.naamsa.co.za

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SECTOR INSIGHT An Automotive Supplier Park is to be built south of Durban. the province’s component automotive manufacturers enjoy a combined turnover approaching R10-billion. Powerstar trucks assembled in Pietermaritzburg on a site formerly used by Super Group. China North Vehicle Corporation (Norinco Motors) and BEIBEN produce about 60 000 heavyduty commercial duty vehicles every year at their plant in Inner Mongolia. Two other global truck marques have assembly plants in the province: Volvo in Durban, and MAN Truck and Bus South Africa in Pinetown. MAN’s assembly plant makes front-engine bus chassis. Keeping MAN and Toyota supplied is the R300-million operation, Duys Engineering Group. International company GUD Filters has a big presence in the province. Indian-owned Apollo Tyres SA makes Dunlop products at two large factories in the province. The Behr Group makes airconditioning and cooling systems in Durban. Ramsay Engineering supplies cross-car beams for BMW and Ford.

KWAZULU-NATAL BUSINESS 2017/18

KwaZulu-Natal Business 2017/18  

KwaZulu-Natal Business 2016/17 is the eighth edition of this highly successful publication that has since its launch in 2007 established its...

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