Toyota Tsusho Africa (TTAF), a subsidiary of Toyota Tsusho Corporation, in collaboration with Ogihara (Thailand) Corporation (OTC) and Toyota South Africa Motors (TSAM), announced a new joint venture with Ogihara South Africa (OSA).
This R1.1 billion investment will benefit local manufacturing, job creation and add value to the supply chain of critical components.
At the announcement event, Andrew Kirby, CEO and president of Toyota South Africa Motors, says: “This joint venture marks a significant step towards our Local Value Addition (LVA) improvement strategy, by localising the production of these critical components. The inclusion of Ogihara SA in our local manufacturing ecosystem will not only create new job opportunities but will also enhance our capabilities in producing high-quality body parts for the automotive industry. This collaboration exemplifies our commitment to localisation and underscores the possibilities for growth and development in the KZN province.”
The South African Automotive Masterplan (SAAM) 2021-2035 aims for South Africa to manufacture 1% of global vehicle production – equivalent to 1.4 million vehicles – a year by 2035. This target is set to significantly enhance the country’s position in global vehicle production rankings. Furthermore, the plan seeks to double employment in the automotive sector to 240 000 jobs.
“As a committed corporate citizen operating within South Africa, this collaboration not only aims to bring significant foreign direct investment to our country but will also create numerous job opportunities and further deepen localisation within our economy, in line with the objectives outlined by the South African Automotive Masterplan,” adds Kirby.
Production will commence in July 2025 and raise TSAM’s local procurement ratio by 2%. It will create 250 new jobs by 2026 and increase local steel production to 25 000 tons annually.
Source: MotorPress
