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Friday, October 9, 2009.

From Creamer Media in Johannesburg, I'm Shannon de Ryhove.

Making headlines today:

The East London industrial development zone has enabled the entry for newcomer and lower-volume selling vehicle brands, especially those from China and India, into the local automotive manufacturing industry, in a model which will see them qualify for incentives under the Automotive Production and Development Programme, which is to kick off in 2013.

The IDZ launched its multi-OEM manufacturing facility at the South African Automotive Week, held in Port Elizabeth.

The site is based on a model where a number of manufacturers will share the same assembly facilities, such as a paint shop, body shop, trim and assembly lines.

East London IDZ business development executive manager Tembela Zweni says keen interest has already been shown in the facility by various OEMs, as well as companies which would provide the assembly services.

South Africa was unlikely to see a straight V-shaped economic recovery after the country's manufacturing output contracted by 15% year-on-year in August, reversing the small improvement registered in July, when output contracted by 13,7%.

This was, however, still an improvement on the 17,1% year-on-year contraction in June, the 17,2% year-on-year contraction recorded in May and the record 21,6% slump in manufacturing output in April.

Statistics South Africa reported that the decline was evident in all ten of the manufacturing divisions, noting that the biggest impact had been on the motor vehicles, parts and accessories, and other transport equipment division, which had seen a 23,8% year-on-year decline in output.

Also making headlines:

Eskom chairperson Bobby Godsell reveals that independent power producer tariffs are up to three times more expensive than average.
South Africa's cement sales were down 11% in September.
Eskom will publish its tariff application next week.
And, Consulting Engineers South Africa launch guidelines to curb corruption.

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