Fri, 24 May 2024
22.7 C
Durban

Auto engineering firm invests R100-million in Struandale facility

Home Manufacturing & Processing Automotive Auto engineering firm invests R100-million in Struandale facility

THE metal forming and assembly company, Formex Industries, will invest just over R100-million in the expansion of its Nelson Mandela Bay facility on the back of yet another VWSA contract award. The company, consisting of Formex Pressings and Tubing, is a primary economic driving force in the Eastern Cape region.

This expansion will see Formex become a key supplier of components for the high runner Polo at around 139 000 cars per year for the next six years.  The components that Formex will manufacture are currently imported from Portugal.

Formex’s factory in Struandale houses a 1600-tonne auto transfer press – the largest press owned by a local supplier in the Eastern Cape.

The auto transfer press makes Formex internationally competitive for bodyshop stampings, which is especially important as this will shift Formex away from its traditional internal combustion engine components.

Formex usually sources 70 percent of its raw materials and services locally, but for the VWSA project, in particular, more than 80 percent of materials and services will sourced from Nelson Mandela Bay region.

The VWSA project is expected to inject over R100-million into the Gqeberha economy for the duration of the project. VWSA along with other original equipment manufacturers (OEMs) and indirect customers of Formex will also benefit from the Struandale facility.

Ford, Isuzu, Mercedes-Benz and Toyota are some of the OEMs that will receive components from Struandale, whether directly from Formex or indirectly through Tier 1 suppliers.

Isuzu components will be manufactured at Struandale

Formex will also supply various components to Isuzu for their all-new D-MAX model, including fuel filler flap assemblies. Struandale will become Isuzu’s second-largest components facility in the world, after Thailand.

Isuzu has made a R1.2-billion investment in its South African facilities, which is a sign of long-term commitment to the local automotive manufacturing industry.

A portion of this investment will go towards the upgrade and extension of the Struandale plant.

Most Popular

Malaysian energy company’s share transfer creates a pan-African group

PETRONAS has sold its 74% shareholding in Engen to Vivo Energy. Engen and Vivo Energy announced the completion of the transaction on 21 May...

Truck heavyweight launches more electric options in SA

IN line with Daimler Truck’s global ambition to offer 100% CO2 neutral trucks and buses by 2050, DTSA introduced its first fully battery electric...

Construction of Coega automotive plant to begin ‘shortly’

STELLANTIS, the world’s third-biggest automotive manufacturer by volume, and South Africa’s largest development funder, the Industrial Development Corporation (IDC) have concluded key milestones that...

SA’s auto sector notes decline in exports, increase in (low) NEV sales

THE domestic automotive industry is celebrating the centenary of vehicle manufacturing in the country in 2024. In the Automotive Business Council (naamsa) Q1 2024...