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Two new plants expand PE’s catalytic converter industry
Posted on: Wednesday, 19 April 2006. Article source: The Herald
Companies are continuing to invest in the catalytic converter industry ahead of government’s decision on support under a revised Motor Industry Development Plan (MIDP), which is expected to be published later this month.
Two flexible coupling plants have been opened in Port Elizabeth, further strengthening the area’s position as one of the world’s leading centres of catalytic converter manufacture.
The new suppliers will give South African catalytic converter manufacturers more opportunity to offer value-added products, says catalytic converter interest group chairman Joe Armstrong.
Flexible exhaust couplings connect catalytic converters to vehicle engines.
“There are two areas for future job creation and expansion in the South African catalytic converter industry.
One is to supply complete exhaust systems, rather than just the catalytic converter ‘box’. The other is to position ourselves for the next generation of diesel catalytic converters.
“But we will not be competitive if there is no support through a programme like the MIDP.
“South Africa is simply too far from the main markets. The main role of the MIDP is to counter the costs of transport and logistics,” Armstrong said.
IWKA Automotive SA, a wholly owned subsidiary of American Boa Inc, has been producing flexible couplings at its Korsten factory in Port Elizabeth since June, 2005.
“American Boa had considered establishing a manufacturing facility for flexible couplings in South Africa for a number of years, due to the competitive labour rates and valuable export incentives offered by the department of trade and industry here,” says plant manager Greg Nilsson.
PE was chosen as IWKA SA’s manufacturing facility site because of its extensive automotive industry presence, strong supplier base, and convenient port access.
A subsidiary of Californian aerospace company Arrowhead, Flexider SA, saw SA’s motor industry development programme and pool of available resources as some of the incentives for establishing a base in the country.
The Struandale-based company was officially launched in February this year, but had been running since July, 2005. All of the locally manufactured products are exported to Europe.
Both flexible coupling manufacturers expect to benefit from the major developments and investments at the Coega industrial development zone.
Two flexible coupling plants have been opened in Port Elizabeth, further strengthening the area’s position as one of the world’s leading centres of catalytic converter manufacture.
The new suppliers will give South African catalytic converter manufacturers more opportunity to offer value-added products, says catalytic converter interest group chairman Joe Armstrong.
Flexible exhaust couplings connect catalytic converters to vehicle engines.
“There are two areas for future job creation and expansion in the South African catalytic converter industry.
One is to supply complete exhaust systems, rather than just the catalytic converter ‘box’. The other is to position ourselves for the next generation of diesel catalytic converters.
“But we will not be competitive if there is no support through a programme like the MIDP.
“South Africa is simply too far from the main markets. The main role of the MIDP is to counter the costs of transport and logistics,” Armstrong said.
IWKA Automotive SA, a wholly owned subsidiary of American Boa Inc, has been producing flexible couplings at its Korsten factory in Port Elizabeth since June, 2005.
“American Boa had considered establishing a manufacturing facility for flexible couplings in South Africa for a number of years, due to the competitive labour rates and valuable export incentives offered by the department of trade and industry here,” says plant manager Greg Nilsson.
PE was chosen as IWKA SA’s manufacturing facility site because of its extensive automotive industry presence, strong supplier base, and convenient port access.
A subsidiary of Californian aerospace company Arrowhead, Flexider SA, saw SA’s motor industry development programme and pool of available resources as some of the incentives for establishing a base in the country.
The Struandale-based company was officially launched in February this year, but had been running since July, 2005. All of the locally manufactured products are exported to Europe.
Both flexible coupling manufacturers expect to benefit from the major developments and investments at the Coega industrial development zone.
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