https://www.engineeringnews.co.za

Capex at record levels in 2015, African exports plunge 22%

Capex at record levels in 2015, African exports plunge 22%

Photo by Duane Daws

16th March 2015

By: Irma Venter

Creamer Media Senior Deputy Editor

  

Font size: - +

Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, said the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review, released on Monday.

Capex by the country’s seven major vehicle manufacturers and various truck producers reached R6.91-billion in 2014, and R4.34-billion in 2013.

Last year’s capex already represented a record, noted Naamsa.

“Relatively high levels in capex in recent, and particularly future years, may be attributed to investment projects by manufacturers in terms of the Automotive Production and Development Programme.”

Naamsa also reported that employment in the automotive assembly industry had grown to 30 466 people in the fourth quarter of last year, which was an increase of 1 478 jobs, or 5.1%, compared with the industry headcount at the end of the third quarter of 2014.

The association believed the “substantial increase” in the industry headcount was related to higher levels of vehicle production during the fourth quarter, as well as anticipated growth in vehicle output in 2015.

South African new vehicle production increased marginally to 566 083 vehicles in 2014, up from 545 913 units in 2013.

Naamsa expected 2015 production to grow 10%, to 625 000 units.

The association also highlighted that new vehicle exports from South Africa to the rest of Africa had fallen by 21.8% in 2014 over 2013, to 61 593 units.

Exports to Europe increased 27.2%, to 101 530 units in 2014, with exports to North America down 26.6%, to 47 985 units, and exports to Australasia up 88.6%, to 29 856 units.

Naamsa expected domestic new vehicle sales to increase by around 3% in 2015 compared with last year.

“However, the key imponderable involves security and stability of electricity supply.”

 

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Sulzer Pumps (SA) (Pty) Ltd
Sulzer Pumps (SA) (Pty) Ltd

Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...

VISIT SHOWROOM 
The Steel Tube Export Association of South Africa
Steel Tube Export Association of South Africa

The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.052 1.414s - 142pq - 2rq
Subscribe Now