http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.16
R/$ = 12.07Change: -0.10
Au 1204.60 $/ozChange: 1.40
Pt 1170.50 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 12, 2012

Toyota kicks off next investment wave with R363m warehouse project

Back
DURBAN|Africa|Components|Engines|Environment|Gearboxes|Motors|Platinum|PROJECT|Projects|Storage|Toyota South Africa Motors|Africa|Europe|Algeria|South Africa|Durban Plant|Prospecton Plant|Toyota Plant|Automotive|Logistics|Motors|Service|Infrastructure|Johan Van Zyl|Motors|Motors|South Africa
|Africa|Components|Engines|Environment|Gearboxes|Motors|Platinum|PROJECT|Projects|Storage||Africa||||Automotive|Logistics|Motors|Service|Infrastructure|Motors|Motors|
durban|africa-company|components|engines|environment|gearboxes|motors-company|platinum|project|projects|storage|toyota-south-africa-motors|africa|europe|algeria|south-africa|durban-plant|prospecton-plant|toyota-plant|automotive|logistics|motors-industry-term|service|infrastructure|johan-van-zyl|motors-person|motors|south-africa-region
© Reuse this



Toyota South Africa Motors’ (TSAM’s) new R363-million parts distribution warehouse is the first big money spent in a fresh multibillion-rand investment cycle by the Japanese manufacturer, says TSAM president and CEO Dr Johan van Zyl.

“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
While the APDP is a “good programme”, it is necessary to increase the local content in South African vehicles built for the local and export markets, says Van Zyl.

“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.


TSAM’s new parts distribution centre was built and equipped in 15 months, and is designed to serve the company’s Southern African Toyota, Lexus and Hino dealer network with daily deliveries. It also supports 70 international destinations where South African-built Toyota vehicles are found.

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.
In the second phase, Toyota will add a further 38 000 m2 of warehouse space, making this facility the largest of its kind on the African continent.
Until this second phase is completed – expected in 2015 – the new facility will be supported by the company’s existing warehouse infrastructure of 22 000 m2 located in Sandton.
The new warehouse carries 2.2-million pieces of 110 000 different parts and components, valued at more than R350-million. • There are currently 108 Japanese companies active in South Africa, creating 15 000 jobs.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Commercial Vehicles News
General Motors (GM) has announced the appointment of Ian Nicholls as president and MD of GM’s South Africa, sub-Saharan Africa and Israel operations, effective June 1. GM says the move is part of the company’s consolidation of its Africa and Middle East operations.
Last year, Toyota South Africa Motors (TSAM) boss Dr Johan van Zyl swapped his Sandton office for another high-pressure environment as he took to Johannesburg’s streets as a minibus taxi driver, even if only for a day. The aim of the exercise was “to really...
The ordinary import duty on automotive lead-acid batteries increased from 5% ad valorem to 15% ad valorem from April 10, says the International Trade Administration Commission of South Africa (ITAC). Ad valorem duties are duties levied according to the value of goods.
More
 
 
Latest News
South African mining and energy adviser Ted Blom has raised a litany of concerns about the state of power utility Eskom and has warned of runaway costs and shortfalls in coal and water, as well as rail capacity. Blom was surprised by the recent buoyancy shown by...
JSE-listed Astrapak will sell specialised packaging systems manufacturer Knilam to Mapflex SA for R17.7-million. The proceeds would be used to reduce Astrapak’s current level of gearing.
The last of the 26 mooring units comprising the Port of Ngqura’s automated mooring system (AMS) have arrived at the port and are expected to improve port efficiency and safety, further driving the Transnet National Ports Authority’s (TNPA’s) objective of establishing...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in 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...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Sappi Southern Africa CEO Alex Thiel
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96