Durban — Toyota Tsusho Africa (TTAF), a subsidiary of Toyota Tsusho Corporation, in collaboration with Ogihara (Thailand) Corporation (OTC) and Toyota South Africa Motors (TSAM), formed a new joint venture, Ogihara South Africa (OSA) at the Dube TradePort in Durban on Thursday.
Dube TradePort CEO Hamish Erskine said the new trade zone is set to receive a R1.9 billion investment from the private sector to go with R2.7bn that was invested for Trade Zone 1 – totalling R4.6bn. About R1.2bn could be generated from the Ogihara SA launch.
“Automotive is becoming a big industry in KwaZulu-Natal. Our job is to try to secure high-value and job-intensive manufacturing in KZN. We have a very strong footprint in electronics, high-value food processing and packaging, and textiles,” Erskine said.
Trade Zone 2 currently consists of Mahindra and Toyota. Erskine said projects such as these would continue to increase investment and job creation in the province.
Erskine added that Trade Zone 2 covers 45 hectares, while Trade Zone 1 covers 26ha. He said this would allow space for growth and expansion.
“I am very optimistic about this launch because this is where policy is exercised into reality, and the national policy on automotives has been very strong. The plant could have remained in Thailand, but now it’s here and we are broadening our supply chain. We are now able to manufacture those parts here,” Erskine concluded.
Economic Development MEC Reverend Musa Zondi said the automotive manufacturing sector was concentrated in the south of Durban and contributed about R21bn to the local economy per annum and employed 20 000 people.
“Employment within the automotive value chain is closely tied to the growth of value addition, which depends on increasing production volumes and local content. By 2035, the goal is to double employment, raising it from the current 110 000 to around 224 000 jobs,” Zondi said.
Zondi added: “It’s in our hands to create a stable and just KwaZulu-Natal. To all potential investors, take a leaf from Toyota, and that the province is open for business.”
Trade, Industry and Competition Minister Parks Tau said the plant would be pivotal in enhancing the local automotive manufacturing landscape.
“This event and the construction of the production facility mark the further commitment of a transformative journey in the South African automotive industry,” Tau said.
He added that this investment would increase the local content on the Hilux, Fortuner and Corolla models to allow Toyota SA to further support the local value-added targets, linked to the localisation targets on the master plan. It is for this reason that the localisation rate in the Automotive Production Development Plan is targeted at 60% by 2035.
“The company has also committed to increasing the number of jobs and I’m told that this investment will create 250 new jobs and through the value chain a further 1040 indirect jobs. It is also pleasing to learn that the investment will also target SMME development with a strong focus on women and youth,” Tau said.
Toyota SA CEO Andrew Kirby said the launch was a testament to the confidence of business in South Africa, as companies recognised government goals. Kirby concluded by saying this investment gave preference to surrounding companies.
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