JSE-listed Metair Investments and its subsidiary, Hesto Harnesses, along with President Cyril Ramaphosa, on September 13 officially launched the new Hesto vehicle wiring harness manufacturing facility in KwaDukuza, KwaZulu-Natal.

The new 35 000 m² Hesto facility is one of five capital investment projects which resulted in a commitment of over R1.4-billion by Metair to support the expansion and localisation of the new Ford Ranger, through automotive component contracts.

In partnership with global automotive parts supplier Yazaki Corporation, Hesto employs manufacturing skills and processes to produce wiring harnesses and instrument clusters for supply to South Africa-based, automotive original-equipment manufacturers (OEMs) Toyota South Africa Motors, Isuzu, Nissan, and recently added, Ford Motor Company of Southern Africa (FMCSA).

The new facility will produce wiring harnesses for the latest Ford Ranger and Isuzu models, which will be sold locally and abroad.

This follows a R15.8-billion investment by FMCSA in its Silverton assembly plant, in Pretoria, and major supplier factories, as announced in 2021, which will enable the company to support production of the next-generation Ford Ranger.

Other subsidiaries involved in these projects include Unitrade 745, Automould, Lumotech and Supreme Springs, with a variety of wires, plastic and chrome plated parts, suspension parts as well as headlights and tail lights being produced.

The investment commitment by Metair is an outcome of the South Africa Investment Conference held in 2020 and directly aligns with the objectives of the South African Automotive Master Plan to 2035 (SAAM2035), with the new facility posited to increase localisation, develop skills and create employment.

Speaking at the launch, Ramaphosa said this investment showcased the long-term commitment by FMCSA and Metair to South Africa and underpinned their confidence in the country’s role in the global automotive value chain.

Metair CEO Riaz Haffejee said the new facility took about nine months to complete, since the groundbreaking last year and that R804-million had been invested in the facility.

A key benefit on the new facility that was lauded during the launch was the employment it has engendered, with 4 000 jobs created, more than doubling Hesto’s staff complement.

Ramaphosa lauded this achievement, especially given that it includes the youth of the country, and further, boasts a 70% female representation.

He also pointed out that the localisation targets would benefit the surrounding communities. Ramaphosa said such strides in localisation were aligned to aims outlined in the SAAM2035 and called for a continued drive in this area.

Hesto MD William Hilditch pointed out that Hesto was the largest employer in the area and said it was proud of its role in empowering the greater iLembe district community.

“The government support to both Ford and Isuzu unlocked this opportunity for Hesto to grow its operations, both in KwaDukuza and Tshwane, and contribute significantly to employment, economic growth, skills development and transformation.

“Our drive to increase localisation across our business has enhanced this impact. Our country has the resources and skills available to localise more and we believe that, through closer collaboration across the value chain, there is much more that can be achieved on this front,” Hilditch commented.

Haffejee echoed these sentiments, noting that the new facility was testament to the Metair group’s customer commitment and drive to support the sustainability of the automotive sector through enhanced localisation and global skills transfer.

“I am extremely proud of what the team at Hesto has achieved and extend our appreciation to our partners and other stakeholders, specifically Ford and Yazaki, for making this project possible,” he outlined.

Haffejee said Metair had driven several localisation projects in support of OEMs and the SAAM2035 agenda through its South Africa-based subsidiaries.

He outlined that, in conjunction with the National Association of Automotive Component and Allied Manufacturers (NAACAM), Metair is currently working on the localisation of copper, one of the core materials in the production of vehicle harnesses. This partnership with NAACAM had assisted Metair in identifying a potential local supplier.

Another focus area was the localisation of polypropylene compounds, which are highly consumed materials within the group subsidiaries.

Metair is headquartered in Johannesburg and manages an international portfolio of companies that manufacture, distribute and retail products for its energy storage and automotive component verticals, exporting to about 46 countries.