Newsroom
Search:

News Article - Automotive
Eastern Cape manufacturing focuses on exports
Posted on: Friday, 20 September 2002. Article source: Eastern Cape Business News
OVER 100 manufacturers in the Eastern Cape are exporting more than 50 per cent of their production, according to the Eastern Cape Development Corporation (ECDC) annual report.
In 2001,R18-billion worth of goods (up from R14.7-billion in 2000) were exported from the Eastern Cape -making up 7.4 per cent of South Africa ’s total. Most exports came from the strong and growing automotive and components industries, according to ECDC ceo Mcebisi Jonas.
The three vehicle assemblers based in the Eastern Cape – Volkswagen South Africa, DaimlerChrysler and Delta - build almost half of all South African passenger cars and a third of commercial vehicles. “The province’s assemblers and component manufacturers have broken into global supply chains, meeting exacting world standards,” says Jonas. He expects the growth to continue, pointing out that the “big three” assemblers, as well as a number of components manufacturers have announced significant investments in the province. This sending a “positive message” to potential investors, says Jonas. Investments include: DaimlerChrysler SA has invested $186-million in its East London plant to assemble the C Class Mercedes for all right-hand drive markets worldwide. It recently reported a 64 per cent increase in turnover to R13.9-billion.DaimlerChrysler SA uses one of the world ’s two export vehicle terminals at the East London river port. Volkswagen SA, based in Uitenhage, exports the new generation Golf 4,mainly to the UK and Europe. It expects to invest $143-million over five years. Delta (formerly General Motors)is investing $64-million over three years to upgrade the body shop at its Struandale Assembly Plant in Port Elizabeth. Ford Company Southern Africa is expanding the production capacity at its Port Elizabeth plant from 55 000 to 240 000 engines per year. The plant is now the sole global supplier of the 1.3 RoCam engine for world markets. Production is projected to reach 240 000 engines per year -or one engine every minute - by 2003. The biggest trade partner is Germany, which accounts for 33 per cent of exports, followed by the United Kingdom (16 per cent) and the United States (12 per cent). While these countries are the province ’s and South Africa ’s current major trading partners, exports to Asia are growing. The province ’s exports to other African countries are low, and this is an avenue that could provide opportunities for local manufacturers, says Jonas.
Article Tags: No tags defined
Podcast













