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News Article - Automotive
Delta secures export contract to Mexico
Posted on: Friday, 22 March 2002. Article source: Eastern Cape Business News
PORT ELIZABETH-based Delta Motor Corporation subsidiary Precision Exhaust Systems (PES) has won a multi-million rand component export contract to Mexico. The deal, valued at R150 million, will see PES manufacture and ship 11 million stainless steel stampings to Mexico over the next five years. Production is scheduled to start in the third quarter of 2002. The parts will be assembled into catalytic converters fitted to General Motors’ sport-utility vehicles built in Mexico. General Motors has a 49 per cent share in Delta, which assembles Opel, Isuzu and Fiat vehicles in Port Elizabeth. “Manufacturing of stainless steel automotive components and assemblies for the world represents one of the core strategies underpinning Delta’s export drive,” said Delta Motor Corporation Director of Exports and Allied Businesses André van Rooyen. “This is yet another example of the many successes notched up over the past several years by our two subsidiaries, Precision Exhaust Systems and Stainless Precision Components.” Van Rooyen says the Port Elizabeth-based PES is acknowledged as a world-class supplier, evidenced by seven consecutive Supplier of the Year awards from General Motors Corporation. The company is geared for high volume and has several state-of-the-art transfer presses with annual capacity exceeding 10 million parts. It focuses on stainless steel pressings for the catalytic converter and exhaust industry while it’s sister company, Stainless Precision Components specialises in stainless steel manipulated and perforated tube and casings for the same users. It is ISO 9002, QS 9000 accredited and recommended for ISO 14001 listing, Precision Exhaust Systems exports to Europe, USA, Mexico, Brazil and Australia. Last year, it achieved a turnover in excess of R600-million.
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