Apr 08, 2010
Ford doubles pick-up, engine investment to R3bnBack
Johannesburg|Port|Port Elizabeth|Africa|Components|Diesel|Engines|FMCSA|Ford Motor Company|Africa|Europe|South Africa|United States|Pretoria Plant|Silverton Plant|Struandale Plant|Automotive|Jeff Nemeth|Rob Davies|Puma|R1|Asia Pacific|Diesel
© Reuse this
FMCSA president and CEO Jeff Nemeth said in Johannesburg that the added funding would be used to increase the level of mechanisation at the plants, and to facilitate further local component development.
Assembly of the "next-generation global compact pick-up", as Nemeth described it, would start in the second half of next year, with the engine plant starting production of the Puma engine in early 2011.
The investment would increase total annual capacity at the Silverton plant to 110 000 left-hand drive and right-hand drive units - up from 2008's 55 000 units and last year's 28 000 tally - with around 75% of the vehicles destined for export markets, primarily to the rest of Africa and Europe.
The Struandale plant would install capacity for 220 000 engines, of which 75 000 would be for the Silverton plant, while the balance would be exported.
Working with roughly 65 different South African component suppliers, FMCSA's annual spending on local components would increase from an estimated R2-billion a year to around R6,5-billion.
"The announcement highlights our commitment to expanding the South African automotive industry, which will enhance the country as an export base for vehicles, engines and components," said Nemeth.
"The investment represents a significant next step in the ongoing expansion plan of Ford's Asia Pacific and Africa region, and underscores the central role of our South African operations. With the continued support of the South African government and hard work and dedication of all our partners, we will continue to drive our operations forward in South Africa."
Nemeth said the investment programme would not immediately create additional jobs at the plants, as the company was still emerging from a four-day production week following the global recession, which had dampened vehicle demand.
Trade and Industry Minister Rob Davies said at the announcement that recent investment by vehicle manufacturers in South Africa now totalled R9-billion.
"These investments do not drop out of the air, they have to be won."
Davies said both FMCSA and government had worked hard to secure the US carmaker's purse.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Components News
Updated 6 minutes ago Failed South African lender African Bank Investments (Abil) is likely to re-list on the stock exchange early next year, and its government supervision will be concluded without the use of taxpayer money, Finance Minister Nhlanhla Nene said on Wednesday. The central...
Updated 21 minutes ago Department of Trade and Industry export promotion and marketing chief director Zanele Sanni has invited manufacturing and advanced manufacturing companies from Shenzhen, China, to invest in South Africa, noting that Chinese investors could also access the additional...
Updated 52 minutes ago The Competition Commission on Wednesday announced that it had unconditionally approved the merger between JSE-listed Distribution and Warehousing Network’s (Dawn’s) Watertech and Sanitaryware business with Grohe International. Under the terms of the merger agreement,...
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...