UITENHAGE-BASED Volkswagen South Africa (VWSA) has secured a R2,16-billion catalytic converter export contract. The company says this is its largest export component contract yet. The contract is for the supply of catalytic converters for the new VW Polo - specifically the 1.4l and 1.6l petrol-powered models which will be launched at the Frankfurt Motor Show in September - in Europe over the next five years. The catalytic converters will be manufactured by Faurecia Exhaust Systems South Africa who have recently been established in Port Elizabeth. Catalytic converters form part of the exhaust system of a motor vehicle and are used for the conversion of greenhouse gases - like carbon monoxide and hydrogen - into harmless water vapour. They are fitted to motor vehicles as a legislated requirement in European, Japanese and North American markets. Volkswagen Managing Director Hans-Christian Maergner said the contract was unique as it was the first time that the company had been appointed the sole supplier of catalytic converters for a specific VW model on a worldwide basis. “South Africa's growing importance as a world centre of catalytic converter manufacture has enabled us to secure a significant export contract that will be used to offset the foreign exchange costs of bringing imported VW and Audi vehicles and CKD components into this country,” said Mr Maergner. “It is well known that catalytic converters contracts are highly sought after by South African motor manufacturers because of their high value and beneficiation of locally-produced raw materials including stainless steel and precious group metals (PGMs) like platinum and rhodium. “In recent years we have seen the establishment of numerous companies in South Africa around catalytic converter manufacture in the area of press parts, matting, coating and canning. It has not only led to the creation of much-needed jobs in this country but has also seen the transfer of technology and skills to our sub-continent.” Faurecia Exhaust Systems General Manager Henry Heuer said that the award of the catalytic converter contract for the new Polo 1.4l and 1.6l models had assisted the newly-established company substantially in fulfilling its business plans. “It certainly is a major opportunity for our new company and reaffirms the substantial investment that our parent company in Europe has made in investing R6 million in new facilities and machinery. Furthermore, it has given us the springboard to recruit 15 employees in this very fast growing industry in the Nelson Mandela Metropole,” said Mr Heuer. “Volkswagen has taken the lead in placing such big projects in South Africa and it is a challenge to the other original equipment manufacturers (OEMs) to follow suit in future.”