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.
