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Toyota South Africa Motors investment programme, South Africa

3rd July 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Toyota South Africa Motors (TSAM) investment programme.

Location
Prospecton, in KwaZulu-Natal, and Gauteng, South Africa.

Project Owner/s
TSAM.

Project Description
TSAM plans to invest R4.28-billion in its local operations until the end of 2020.

The investment will straddle several areas of the local company’s operations.

Most of the investment has been allocated to prepare for the production of a new passenger-car model at the Prospecton plant. The new vehicle will replace the Corolla production line, which is due to come to an end this year. The new vehicle will include a Toyota hybrid synergy drive model. The production of the Corolla Quest will continue.

Other investments include upgrades to the local production of the Hiace Ses’fikile mini bus, as well as an increase in production volume of this model from 14 000 to 18 000.

A packing plant will also be established to support knock-down production of the Hilux bakkie in Kenya.

TSAM also plans to double the size of its Atlas warehouse, in Gauteng, from 40 000 m2 to 80 000 m2. When completed, the facility will be the largest automotive parts warehouse in the southern hemisphere.

The carmaker also has a number of ongoing projects, which include investment in the production of the new Corolla Quest model and several facilities upgrades at the plant.

Potential Job Creation
The proposed production of the new passenger-car is expected to create about 1 500 jobs, of which 500 will be at TSAM and 1 000 with suppliers.                                                                

Upgrades to the local production of the Hiace Ses’fikile mini bus is expected to create 270 new jobs.

Capital Expenditure
Preparations for the production of the new passenger-car model at the Prospecton plant are expected to cost an estimated R2.43-billion.

Upgrades to the local production of the Hiace Ses’fikile mini bus are expected to cost about R454-million to implement. A further R91-million will be spent to increase production from 14 000 to 18 000 units a year and R20-million to establish the packing plant.

The construction of the warehouse is expected to cost about R365-million.

About R18-million will be invested in the production of the new Corolla Quest and R928-million for facilities upgrades.

Planned Start/End Date
The production of the proposed new passenger-car model at the Prospecton plant is expected to start in October 2021.

The packing plant is expected to be completed in 2021.

The investment in the new Corolla quest and upgrades at the plant are expected to be completed this year.

Latest Developments
Work has started in earnest at the Toyota Parts Distribution Warehouse, in Atlas road. 

The expanded parts distribution warehouse will enable TSAM to improve the availability of service and replacement parts for all its vehicles, including Toyota, Hino and Lexus. 

The facility will support more than 250 dealerships in the Southern Africa region, as well as 70 international destinations where South African-built Toyota vehicles are found.

The current warehouse building was officially opened in 2012 and was designed to be environmentally sensitive. 

It has a water collection and irrigation system aimed at reducing the total water consumption at the facility. 

There is also an underground retention tank with the capacity to hold up to

175 000 ℓ of rainwater, collected from the warehouse roof, and then drained through a biofilter before it is used to irrigate the landscaped areas. 

The new phase will feature a two-million-litre tank for the harvesting of rainwater.   

Already a state-of-the-art megadistribution centre, the warehouse will be turned into an ultrafacility, absorbing all the operations from the company’s first warehouse of 22 000 m2, in Sandton. 

“The sheer size and scale of the warehouse we are building is a clear indication that we are committed to the South Africa automotive sector, as well as playing regional hub to the rest of the continent,” TSAM sales and marketing senior VP Leon Theron has said.

While progress on the construction site has been slightly delayed by lockdown measures in April and May, TSAM and developer Investec – which built the original structure – are positive that the facility will be officially opened next year. 

The design and layout of the Phase 2 facility have already been updated to promote physical separation and distancing, as well as adequate ventilation, while also providing space for temperature screening.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
TSAM, tel +27 11 809 9111.

 

Edited by Creamer Media Reporter

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