Durban - President Cyril Ramaphosa said that the industrialisation of South Africa’s economy was a key pillar of the country’s Economic Reconstruction and Recovery Programme.
Ramaphosa was speaking at the launch of the in KwaDukuza yesterday.
The 35 000m² facility is one of five capital investment projects which resulted in a commitment of over R1.4 billion by Metair in South Africa, and will produce wiring harnesses for the latest Ford Ranger and Isuzu models.
The launch was also attended by KwaZulu-Natal Premier Nomusa Dube- Ncube and Minister of Trade, Industry and Competition Ebrahim Patel.
Ramaphosa said the investment commitment by Metair reflects long-term confidence in South Africa as a key link in the global automotive value chain.
“We need to work together to unlock new business opportunities, transformation and employment creation in South Africa’s component manufacturing landscape, just as we need to promote new investments in technology and skills.”
Ramaphosa said the automotive sector in South Africa was one of the biggest beneficiaries of foreign direct investment in the country.
“Despite all the challenges, 2021 was a significant year for automotive investments. According to the National Association of Automotive Manufacturers of South Africa, last year seven OEMs (original equipment manufacturers) invested a total amount of R8.8bn, the second highest annual figure on record.”
He said with unemployment being a huge challenge, it was significant that the facility would create more than 4 000 employment opportunities.
“The benefits of this investment will also be felt by maintenance, catering and other service providers that will be contracted to support these operations.”
Dube-Ncube said supporting industrial development was a strategic priority given that the manufacturing sector was one of KwaZulu-Natal’s competitive advantages.
“Today’s launch of the Metair factory is thus a humbling reminder of the symbiotic relationship that exists in our province between all levels of government and the private sector. This is the best demonstration of the enduring partnership between business and government, but also the very tight working relations we have been able to forge with our businesses.”
She added that: “This new investment provides ample evidence that South Africa, and more importantly KwaZulu-Natal, remains a preferred investment destination in the country.”
Dube-Ncube said this launch tied in with the drive towards industrialisation and the effort to increase the localisation of value-chains.
“Our two special economic zones (SEZ), the Dube TradePort and Richards Bay IDZ, have become levers for the province’s drive in this regard. Among others, not far from here, the Dube TradePort is implementing an expansive five-year Strategic Plan focused on the core SEZ mandate of driving localisation of manufacturing.”
Riaz Haffejee, CEO of Metair, said the facility bore testament to the group’s customer commitment and drive to support the sustainability of the automotive sector through enhanced localisation and global skills transfer.
“I am extremely proud of what the team at Hesto has achieved, and extend our appreciation to our partners and other stakeholders, specifically Ford and Yazaki, for making this project possible.”