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News Article - Automotive
Strong exports out of Port Elizabeth
Posted on: Friday, 05 October 2001. Article source: Eastern Cape Business News
PORT ELIZABETH-based manufacturers have secured export orders valued at billions of rands over the past few months. One of the biggest is a R2.16-billion catalytic converter contract announced by Volkswagen South Africa. The catalytic converters will be fitted to the VW Polo, which is made in Europe. Port Elizabeth-based catalytic converter manufacturer Faurecia Exhaust Systems will be manufacturing the parts. Volkswagen SA's announced a second R1.7-billion contract to supply catalytic converters to Europe and China. Delta Motor Corporation also scooped a large export contract earlier this year. The motor manufacturing giant joined forces with manufacturer Petri South Africa in a R22 million steering wheel programme for Opel in Germany. In little more than a decade, Delta has taken its export turnover from zero to in excess of R1-billion per annum. Renault’s signing of a six-year export contract involving the export of catalytic converters worth R11 billion to Europe has also had a significant impact on Port Elizabeth based companies. Some 14 million converters will be exported until 2007. The components are to be sourced from six companies - Engelhard, NGK, Corning, Johnson Matthey, Autocat and Faurecia. All but NGK have plants in Port Elizabeth. Autocat secured an R80-million contract, earlier this year, for the manufacture of Audi catalytic converters to be exported to Europe. At the moment, Autocat in Port Elizabeth exports 1.2 million catalytic converters per annum, and a further 450 000 silencers and renovators. Southern Africa's main supplier of toughened and laminated automotive glass, Shatterprufe was recently awarded a contract to produce door glass for the right-hand-drive C-Class Mercedes Benz being made in East London. The car is being exported to Japan and Australia. As a direct result of the contract, the company invested R1.5 million in technology upgrades in its Port Elizabeth plant. One of the region’s most successful Black Empowerment companies, Yenza Manufacturing, has been awarded a R3 million per year contract for the supply of metal sheeting for the Mercedes C-class. The contract will run over a four-year period and is the first DaimlerChrysler Germany contract awarded to a black owned company. Uitenhage-based Comau SA Body Systems was awarded two lucrative export orders for a fully automated lines for Chinese and Australian auto plants. The estimated value of the Chinese project is R50 million while the Australian deal amounts to about R25 million. This comes hot on the heels of another contract secured in January this year for a semi-automated main assembly line for three derivatives of vehicles. The order includes all transfer facilities, all services including water, air, electrical and overhead steel structure of the main assembly line for the Russian market and is worth about R55 million. Automotive component manufacturer Sten Products recently received its QS 9000 accreditation, which has led to a 40 growth in turnover. Another company receiving regular export contracts is Howden Donkin, manufacturers of standard axial fans. Towards the beginning of the year, the company received a contract valued at R500 000 to supply Howden Australia. A little later in the year, the company secured an export order for 400 Ventline thermally powered diffusers (TPDs) from the US.
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