Durban, South Africa
Industryweek 11063 Durban South Africa 1

New Auto-Supply Park to Open in South Africa in 2018

May 24, 2016
The South African government’s auto-incentive program has attracted companies including Toyota, Ford Motor Co. and BMW AG to set up factories and invest in creating jobs in an economy with an unemployment rate of more than 26%.

As part of its effort to increase investment in local-parts production, South Africa plans to start developing a 11.5 billion rand (US$735 million) automotive-supply park south of Durban, its third-largest city.

The eastern Kwa-Zulu Natal province last week bought 1,000 hectares (2,470 acres) of farmland for the project and it will target suppliers including ones already working with vehicle manufacturers in the country, Mike Mabuyakhulu, the provincial head of economic development, said Tuesday at an event at Toyota Motor Corp.’s plant, also south of Durban.

The South African government’s auto-incentive program has attracted companies including Toyota, Ford Motor Co. and BMW AG to set up factories and invest in creating jobs in an economy with an unemployment rate of more than 26%.

Toyota spent 6.1 billion rand to facilitate production of its new Hilux and Fortuner vehicle models at the South African plant, Andrew Kirby, the chief executive officer of its local unit, said at the site on Tuesday. The facility is the second-largest producer of the models, after Toyota’s plant in Thailand, he said.

The government has started working toward extending support for the automotive industry beyond its current 2020 outlook and it aims to complete the new plan by March 2017, President Jacob Zuma said in a speech at the Toyota plant. 

Popular Sponsored Recommendations

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

Electric Vehicles Spark New Opportunities in the Automotive Industry

Dec. 4, 2023
Automakers have increased plans to produce Electric Vehicles to meet customer demand for low emissions. With this radical shift, new opportunities and challenges for the auto ...

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!