JSE-listed energy storage and automotive components manufacturer Metair has announced that Sjoerd Douwenga has decided to resign as CEO and executive director with effect from January 31.
Douwenga was first appointed to the board in 2014, and served with dedication, first as CFO and most recently as CEO.
Metair says its board is grateful for his meaningful contribution during his tenure, is understanding of his decision and wishes him all the best in his future endeavours.
It adds that the Metair leadership team is stable, experienced and skilled. A recruitment process to identify Douwenga's successor has started, and the board has put a plan in place to ensure leadership continuity during the transition.
Douwenga will remain available to Metair until March 31 to ensure an orderly handover.
Meanwhile, in an update to the market on the status of the Ford Project in South Africa, which aims to be a major driver of growth for the company's automotive components vertical, Metair said the Ford Project volumes are progressing in line with expectations and that the group's investee companies involved in this project continue to perform according to expectations.
Further, in relation to the company's associate Hesto Harnesses, management said commercial negotiations have progressed positively.
A commercial price adjustment, including cash compensation effective from July to compensate for, among others, the significant increase in product design complexities introduced during the ramp-up phase, is in final approval stages with the customer.
This proposed adjustment is expected to result in a meaningful uplift in the revenues and operating profit to be generated by Hesto over the remaining model life.
"Hesto has taken significant steps to enhance efficiencies and reduce costs internally. Metair, which is Hesto's technical partner and customer, remains committed and is actively working closely to ensure the long-term success of this project and sustainability of Hesto to the benefit of all parties," the company said.
Additionally, to support the Hesto management team, Theo Loock has been appointed as a consultant to provide operational and strategic guidance to Hesto until the end of March 2024.
Metair also advised shareholders that, on November 30, its Romanian subsidiary Rombat received an advance copy of a Statement of Objections from the European Commission, which has been circulated to several manufacturers of automotive lead-acid starter batteries.
The statement expresses the Commission's concerns, in its capacity as the main European Union (EU) anti-trust regulator, that manufacturers including Rombat may have potentially violated European Union (EU) anti-trust rules in the field of automotive lead-acid starter batteries between 2004 and 2017.
"Rombat is currently considering the statement in detail and, in terms of the EU's Competition Law procedures, is required to provide a response within two months. This deadline can be extended. In line with the strict confidentiality obligations, Rombat is prohibited from disclosing any further information at this stage."
The statement does not constitute a definitive ruling by the Commission and a final determination will only be made following receipt and assessment by the Commission of Rombat's submissions.
"Rombat, as with all Metair Group companies, remains committed to conducting its business in full compliance with European law," Metair said.