A new automotive component manufacturer was launched in Port Elizabeth on Friday following a direct investment from California-based aerospace company Arrowhead.

Flexider SA, which is a subsidiary of Arrowhead, quietly set up a factory in Struandale in July last year and started manufacturing and exporting flexible exhaust couplings for Italian-based Magneti Marelli.

Arrowhead president David Schramm said reasons for investing in the city included good local governance, a good employee base, and their customer Magneti Marelli requesting that the company set up in South Africa.

“With this investment we also plan to grow our operations in South Africa and supply other products to the automotive industry,” said Schramm.

He said the company used similar technology in the United States to manufacture products for space shuttles and it was not unlikely that the factory could produce these products in the future.

Other factors that drew the company to South Africa included the availability of resources and the trade credits that flows from the motor industry development programme (MIDP).

Plant manager Mike Bayes said the factory currently only supplied Magneti Marelli with couplings and would be manufacturing 500 000 couplings a year.

Bayes said competition was strong in the industry and that there were a lot of companies worldwide manufacturing couplings.

“South Africa’s competitiveness lies in that we have good legal and banking infrastructure and a sympathetic government with a desire for growth.

“This enables companies to make things happen when they come here.”

He said the biggest challenge in the country was still in finding technically skilled employees. The company employs 45 staff.

Looking at the future, Bayes said Ferrostaal’s investment at the Coega IDZ would open the way for the company to source locally made stainless steel sheeting used to manufacture couplings.

This was expected to reduce the input cost for coupling manufacturers across the Bay.

Flexible exhaust couplings connect catalytic converters (cats) to vehicle engines.

Couplings are part of the cat value chain and as demand for them rises due to emission regulations being introduced to more regions around the globe, the demand for flexible couplings also rises.

The launch was attended by industry stakeholders and delegates from the Coega Development Corporation and Eastern Cape Development Corporation who assisted Flexider to invest in the Bay.