General Motors South Africa (GMSA), in partnership with component manufacturer Tenneco South Africa (SA), has clinched a R6-billion contract to export catalytic converters to North America.
The catalytic converters, which will be manufactured at Tenneco SA’s clean air plant, in Port Elizabeth, in the Eastern Cape, will be supplied for General Motors’ (GM’s) next-generation V-6 engines, to be used in vehicles build and sold in North America from 2015 to 2022.
“The decision to award this contract to South Africa is a great show of support by our parent company, as it comes ahead of a clear legislative framework by the South African government to support the strategic growth of exports,” says GM Africa president and MD Mario Spangenberg.
The project will require around 10 t of platinum-group metals over the duration of the programme.
GMSA and Tenneco SA have a long history in the catalytic converter industry, having cooperated for more than 12 years already to produce catalytic converters and related components for the North American market.
GMSA’s current exports stand at 2.6-million catalytic converters a year, used on 17% of the vehicles produced by its US parent company globally.
“Supplier operations in South Africa are competing with other operations around the globe,” comments GM International Operations global purchasing and supply chain VP Johnny Saldanha. “In order to attract business, suppliers need to be globally competitive in the critical areas of both cost and productivity. “In parallel to this, business needs to operate in an enabling economic environment supported by a stable labour force.”
He adds that GM often has to plan as far as five years in advance for its next vehicle programmes.
“We need to have a predictable and clearly defined legislative framework in order to accurately predict future trends and make realistic business plans.”