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Tuesday, February 3, 2009.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

South Africa's component manufacturing industry is facing a crisis as vehicle manufacturers take increasing strain under sharply declining local sales and exports.

National Association of Automotive Component and Allied Manufacturers executive director Roger Pitot says he estimates that 10 000 people have lost their jobs in the South African component manufacturing industry over the past year, with about half of these permanent employees.

Pitot says he conducted a snap survey among Naacam's members and 30 companies, employing 8 500 people, responded. They indicated that they've retrenched 4 500 people over the past few months.

Pitot says he is also aware of six component manufacturers that have closed their doors. Job losses at these companies alone are estimated at more than a thousand people.

Vehicle manufacturer General Motors South Africa could shed more jobs should Hummer production be halted at the company's Port Elizabeth plant.

Should the Hummer production line close, 130 hourly and 30 salaried employees could be affected.

This situation could be compounded by a further deterioration in the local vehicle sales market. Company spokesperson Denise Van Huyssteen said this would necessitate "a review of additional opportunities to reduce head-count and to rationalise operations.

Total South African vehicle sales declined 21% from 2008 to 2007. An additional 10% drop is expected in 2009.

Also making headlines:

Power and automation technology group ABB wins a 53-million-dollar contract to strengthen Eskom's transmission network.
Paper and pulp producer Sappi's outlook is uncertain as first quarter demand slumps.
India, Brazil and South Africa launch a nanotechnology forum.
And, Zimbabwe's central bank knocks 12 zeroes off its inflation-hit dollar.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.