The largest investment ever in Dube TradePort’s TradeZone 2 – a massive R1.1-billion automotive component maufacturing plant – was launched last Thursday.
This will have a significant impact on the local economy, sourcing services from local businesses and creating hundreds of jobs.
The new 32 000m² plant will produce pressed steel components for Toyota South Africa. A joint venture between Toyota Tsusho Africa and the Ogihara Thailand Corporation, the facility will initially create 230 jobs, with the potential of increasing this by 300 work opportunities within five years.
Construction has already begun, with manufacturing operations scheduled to commence in June next year. Ogihara SA is the single largest investor secured by the TradePort since its inception next to King Shaka International Airport.
It is the second automotive sector investor to establish operations there, following Mahindra South Africa’s vehicle assembly plant opened in 2018.
Economic Development, Tourism and Environmental Affairs MEC, Rev Musa Zondi, said the project was a clear indication of the growing momentum in the region’s economy.
“As outlined in the South African Automotive Masterplan, a key objective of the country’s automotive industry is to increase domestic vehicle production to 1.4 million units by 2035, representing about 1% of global output.
Achieving this goal requires progress across several key industry targets, including increasing local content, employment, industry competitiveness, and driving transformation in the local industry,” said Zondi.
South Africa’s automotive industry employs around 115 000 workers and contributes 5.3% to the national GDP.
Ogihara SA’s decision to source 90% of its steel sheets locally will strengthen the struggling steel sector. CEO and president of Toyota South Africa Motors, Andrew Kirby, said the joint venture marks a significant step towards the Local Value Addition improvement strategy by localising the production of critical components.
“The inclusion of Ogihara SA in our local manufacturing ecosystem will not only create new job opportunities but also enhance our capabilities in producing high-quality body parts for the automotive industry.
This collaboration exemplifies our commitment to localisation and underscores the potential for growth and development in the KZN province,” said Kirby.
The automotive industry is South Africa’s largest manufacturing sector. Currently, KZN’s automotive manufacturing sector is concentrated south of Durban, contributing about R21-billion per annum to the local economy and employing about 20 000 people.
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