Oct 12, 2012
Toyota kicks off next investment wave with R363m warehouse projectBack
DURBAN|Africa|Components|Engines|Environment|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 Commercial Vehicles News
Updated 3 hours ago A former employee of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and his accomplice have each been sentenced to 20 years imprisonment after being found guilty of fraud by the Specialised Commercial Court, in...
Updated 3 hours ago The Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target of 1.32-million tons, Transnet Port Terminals (TPT) said on Monday. TPT said the reaching of vessel targets ahead of deadline created...
Updated 3 hours ago The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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 road...
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.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...