Oct 12, 2012
Toyota kicks off next investment wave with R363m warehouse projectBack
DURBAN|Automotive|Engines|Motors|PROJECT|Projects|Toyota South Africa Motors|Africa|Europe|Algeria|South Africa|Durban Plant|Prospecton Plant|Toyota Plant|Automotive|Motors|Infrastructure|Johan Van Zyl|Motors|Motors|South Africa
© Reuse this
“We will be looking at investing into the production of new models at the plant again, and expanding our business.”
TSAM currently assembles the Hilux, Fortuner and Corolla models at its Prospecton plant, in Durban, which has the capacity to produce 220 000 units a year. It also assembles the Quantum minibus in a new investment programme announced earlier this year and set to expand soon.
“We’ll be making announcements as the projects come to fruition,” says Van Zyl.
He adds that government’s new Automotive Production Development Programme (APDP), active from 2013, provides a stable backdrop for TSAM’s investments, but that political and economical stability also play a role.
Van Zyl notes that recent labour unrest at the Marikana platinum mine, in which 46 people died, has tarnished South Africa’s image abroad.
“We have to ensure that we manage this situation well, and that we do not create a negative environment for investors.”
He adds that Toyota remains positive about South Africa, and that it will continue its investment programme in the country.
Must Increase Local Content
“When we review the APDP, we’ll have to look at how we can improve local content and how we can build in more benefits for components manufacturers.
“We’ll have to look at engines and gearboxes, which would, of course, require large investments. And we require these additional investments as the components sector is where the most jobs are created.”
Current local content on the Corolla is around 40%, and 60% on the Hilux.
Van Zyl says exports of these models from the Toyota plant are progressing steadily, with an improvement expected on last year’s numbers.
While debt-ridden Europe is proving a challenging market, Africa is growing steadily in its take-up from the Durban plant.
“Algeria will sell more than 400 000 vehicles this year,” notes Van Zyl.
“Africa’s middle class is starting to grow, and it is no longer only the State and semi-State institutions buying vehicles,” he adds.
The new facility has 39 000 m2 of storage space and a further 3 000 m2 of office space. This area hosts the company’s customer service and logistics support divisions.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines
Other Automotive News
Updated 24 minutes ago Department of Public Enterprises (DPE) director-general Tshediso Matona confirms that the interdepartmental task team established to find a solution to Eskom’s financial problems has agreed that further support will be required. However, he says it is premature to...
Updated 32 minutes ago Telecommunications group MTN is preparing to commercially launch high-speed fibre-to-the-home (FTTH) in June after completing a successful pilot project earlier this month in Johannesburg. MTN is currently aggressively deploying the technology to high-density urban...
Updated 1 hour 2 minutes ago As telecommunications giant MTN continued to operate in a “tough” environment, with persistent price competition and regulatory challenges in key markets, the group achieved a marginal quarter-on-quarter rise in subscribers throughout its markets in Africa....
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...