Jun 22, 2012
Developments in Coega IDZ create opportunities for SA companyBack
First Automobile Works|Lear Corporation|Springwell|Eastern Cape|Andrew Ogden|Dave Ogden|Ground|Eastern Cape
© Reuse this
Fortune 500 company First Automobile Works (FAW) is building a new truck assembly plant in the Coega IDZ, and Springwell hopes to be able to supply the plant with components, he says.
Engineering News in February reported that FAW had broken ground on the plant, with production scheduled to start at the end of 2013. The plant will produce 5 000 medium and heavy commercial vehicles a year.
The trucks are destined for the local market, as well as for export to a number of African countries. FAW sells roughly 20 000 units a year to the African market.
There are also currently a number of large export contracts by vehicle manufacturers under way; however, the size of these projects increases competition between components suppliers, as manufacturers are sourcing components globally.
“Although this is good for the economy, it makes securing contacts more difficult, as our prices need to be globally competitive,” MD Dave Ogden explains.
To maintain its competitive edge and successful business, Springwell has to continuously diversify, he says.
This has seen the business’s product range grow and investments have been made in new technology, machinery and quality systems.
“Springwell constantly develops new products made according to customer specifications,” says Andrew Ogden.
The company has been supplying products to automotive seat manufacturer Lear Corporation for over 20 years. It will also supply Lear with components for a new car model, on which manufacturing will start within the next few months, he says.
The products for this contact will be similar to products previously supplied to Lear. “We will provide them with numerous components, including springs, clips and wire fasteners, which are used to hold the cloth to the vehicles’ seats,” explains Andrew Ogden.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines
Other Automotive Components News
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...
Nissan will re-enter the South African minibus taxi industry in March, when the new NV350 Impendulo goes on sale. The 16-seater has been specifically tailored to meet the terms of government’s Taxi Recapitalisation Programme, which aims to replace South Africa’s...
Next ArticleSouth Africa’s railway sector takes the strain