Oct 01, 2012
Toyota parts centre leads new round of investment from manufacturerBack
DURBAN|Engineering|Africa|Components|Engines|Motors|Platinum|Projects|Toyota South Africa Motors|Africa|Europe|Algeria|South Africa|Durban Plant|NEW PARTS DISTRIBUTION WAREHOUSE|Prospecton Plant|Toyota Plant|Automotive|Motors|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,” he told Engineering News Online at the opening of the parts centre, located in Ekurhuleni.
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, set to expand soon.
“We’ll be making announcements as the projects come to fruition,” said Van Zyl.
He added that government’s new Automotive Production and Development Programme (APDP), active from 2013, provided a stable backdrop for TSAM’s investments, but that political and economical stability also played a role.
Van Zyl noted that recent labour unrest at the Marikana platinum mine, in which 46 people died, had 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 added that Toyota remained positive about South Africa, and and that it would continue its investment programme into 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 component manufacturers.
“We’ll have to look at engines and gear boxes, which would, of course, require large investments. And, we require these additional investments as the component sector is where the most jobs are created.”
Current local content on the Corolla was around 40%, and 60% on the Hilux.
Van Zyl said exports of these models from the Toyota plant were progressing steadily, with an improvement expected on last year’s numbers.
While debt-ridden Europe was proving a challenging market, Africa was growing steadily in its take-up from the Durban plant.
“Algeria will sell more than 400 000 vehicles this year,” noted 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.
NEW PARTS DISTRIBUTION WAREHOUSE
The new facility had 39 000 m2 of storage space and a further 3 000 m2 of office space. This area hosted the company’s customer service and logistic support divisions.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Automotive News
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
South African construction company Group Five says work on the rehabilitation of the 800 km stretch of the Plumtree–Mutare highway, in Zimbabwe, should be completed by the end of this year. Giving evidence before the Parliamentary Porfolio Committee on Transport...
The Space Operations division of the South African National Space Agency (Sansa) revealed on July 17 that it had supported the successful launch of the US National Aeronautics and Space Administration’s Orbiting Carbon Observatory-2 (OCO-2) satellite on July 2. The...
Phase 1A of Johannesburg’s Rea Vaya bus rapid transit (BRT) system should carry around 42 000 people a day, while it was been expected that Phase 1B, rolled out last year, would add another 60 000 daily passengers. However, the entire system is currently carrying...
A stormwater project in Bedforview, east of Johannesburg, has stalled for eight months after project managers in the Ekurhuleni municipality resigned and municipal managers were placed on special leave without designating replacements. Construction to reinforce the...
The design of the Beit Bridge border post is the biggest impediment to efficient freight movement between Zimbabwe and South Africa, says Cross-border Road Transport Agency CEO Sipho Khumalo. Beit Bridge is the busiest border post in Africa. A research study on the...