Oct 12, 2012
Toyota kicks off next investment wave with R363m warehouse projectBack
DURBAN|Africa|Components|Engines|Gearboxes|Motors|Platinum|PROJECT|Projects|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
© 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 (150 word limit)
Other News This Week News
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...