The Supreme Spring, and Springs and Bolts teams at the South African facility
The African Association of Automotive Manufacturers (AAAM) has welcomed the signing of a memorandum of understanding (MoU) between Supreme Spring, a subsidiary of JSE-listed group Metair, and Springs and Bolts, based in Ghana.
Supreme Spring MD Mark Barley and Springs and Bolts CEO Derrick Asamoah Boahen signed the MoU at the premises of Supreme Spring during a visit earlier this month by a team from Springs and Bolts to familiarise themselves with the operations and possible areas of collaboration with the South African company.
The AAAM says the signing is the result of an exploratory visit in early March by South African automotive component manufacturers to Ghana, hosted by the AAAM.
The objective was to introduce potential investors to the Ghanaian automotive market. The visit focused on aftermarket opportunities, which, in time, should also support original equipment manufacturer (OEM, or vehicle manufacturer) assembly as volumes grow.
Currently almost all aftermarket components in Ghana are imported.
Supreme Spring, based in Nigel, designs, manufactures, markets and supplies heat-treated steel components, such as leaf and coil springs, and torsion and stabiliser bars, to the local and international automotive market.
Springs and Bolts, based in Kumasi, Ghana, manufactures leaf springs, u-bolts, trailer axles and suspensions for the Ghanaian and other West African aftermarkets.
“We believe that this MoU is the beginning of a mutually beneficial relationship that will allow both parties to grow their business,” says Barley.
While Supreme Spring will share its technical expertise and provide training in key skills, Springs and Bolts should open new markets for Supreme Spring in West Africa.
“During our recent visit to Ghana it became clear that the Ghanaian government is serious about developing Ghana into an automotive hub for West Africa, and we want to be a part of that growth by partnering with a local company,” says Barley.
“Our visit to Supreme Spring confirmed our view that we have found the ideal partner to help us develop and grow our business in Ghana, and potentially expand it to additional West African countries going forward,” notes Asamoah Boahen.
“We are currently focused on the aftermarket and see much growth potential in this area in future.
“We are also excited that as we see OEMs entering the market in Ghana, through our relationship with Supreme Spring, we’ll be able to manufacture components in Ghana that meet the stringent quality standards that the major automotive vehicle manufacturers demand from their suppliers.”
“Seeing the first concrete outcome from our component supplier visit to Ghana through the signing of this MoU is gratifying for AAAM as we continue to actively drive our vision to develop a viable automotive industry for Africa,” says AAAM CEO David Coffey.
A second exploratory visit by component suppliers to Ghana is planned for the second half of this year.