April 2011 - Malnor
April 2011 - Malnor
April 2011 - Malnor
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Trade News<br />
New market, way forward<br />
A new<br />
Mercedes-Benz South Africa (MBSA) hosted a series of talks<br />
between leading South African component suppliers, the<br />
South African government and top Daimler AG officials in<br />
Germany recently in a bid to encourage further local growth<br />
in the component supply industry and to openly debate<br />
challenges to achieving greater localisation in this important<br />
part of the SA auto industry.<br />
Following the December 2010 announcement of Daimler AG<br />
that it was to invest a sizeable R2 billion into the MBSA<br />
plant in East London for the production of the nextgeneration<br />
C-Class, the group’s focus has been on fruitful<br />
discussion with the Department of Trade and Industry to<br />
find ways of attracting more international component<br />
manufacturers to invest in SA, establish large-scale<br />
production here and thus create more jobs and a wider<br />
industry infrastructure.<br />
Dr Wolfgang Bernhard, Daimler AG Board of Management<br />
member, Manufacturing and Procurement Mercedes-Benz<br />
Cars and Mercedes-Benz Vans, said: “The Mercedes-Benz<br />
plant in East London has been recognised repeatedly for its<br />
excellent production quality and is one of the best<br />
manufacturing plants in the industry. Moreover, MBSA<br />
managed to provide us with a future business and<br />
production plan that is competitive globally. This was crucial<br />
in our decision to extend production activities in South<br />
Africa. This latest investment follows numerous significant<br />
investments, totalling over R5 billion, that Daimler AG has<br />
made in South Africa over the past 10 years.”<br />
30<br />
farmers market opened in Pietermaritzburg,<br />
KwaZulu-Natal, has been praised as a true<br />
development for the disadvantaged.<br />
The Newport Fruit and Vegetable Fresh Produce<br />
Market, opened with R3,5 million funding support from<br />
The National Development Agency (NDA), will assist<br />
emerging farmers, generate jobs and provide a sustainable<br />
income for the area from wholesale produce.<br />
“Newport Market is a solution to the emerging farmers’<br />
problem of market access. We had more and more NDA<br />
funded initiatives that were unable to grow and sustain<br />
themselves after the NDA funding has run out. We realised<br />
that the same problems were affecting other small and<br />
emerging farmers.”<br />
The Newport Market will service the emerging farmers from<br />
the KwaZulu-Natal Midlands. It has a database of farmers<br />
from the Midlands and afar, of which 40 are already able to<br />
supply the market. These farmers will get advice on what to<br />
Plan to grow local<br />
component supply industry SA Minister of the<br />
plant and when to plant based on market demand from the<br />
Newport Market personnel. This approach will play a major<br />
role in the eradication of poverty and creation of much<br />
needed jobs.<br />
The NDA gave the Newport Market Cooperative a grant to<br />
the amount of R3,5 million. The grant went towards leasing<br />
the market building, shop fitting with new equipment,<br />
training, administrative costs, stipends for the Cooperative<br />
members, securing of stock and hiring a mentor, Mr Mark<br />
Elliot, from Peter and Co who has been guiding the<br />
Cooperative from the beginning of the project. ◆<br />
Department of<br />
Trade and Industry<br />
Rob Davies attended<br />
the MBSA Supplier<br />
forum in Germany<br />
The delegation to Germany included Minister of the<br />
Department of Trade and Industry, Rob Davies, who<br />
expressed support for the initiative and pledged<br />
government’s commitment to finding optimum solutions<br />
within the scope of the existing and future legislative<br />
framework for a significant strengthening of the automotive<br />
industry in South Africa.<br />
“This initiative, spearheaded by MBSA, has a two goal<br />
approach. One aim is to encourage the expansion of<br />
component suppliers already based in South Africa,”<br />
explained the MBSA host, Rainer Ruess, Vice-president at<br />
MBSA responsible for manufacturing and procurement.<br />
“The second aim is to encourage other global component<br />
suppliers not yet producing in South Africa to join our<br />
industry, either through joint ventures or new establishments<br />
here and so bring with them their access to global research<br />
and development and innovative technologies.”<br />
According to NAAMSA (National Association of Automobile<br />
Manufacturers of South Africa) the automotive industry<br />
contributes in excess of 6% annually to the country’s GDP<br />
and is responsible for well over 28 000 jobs. ◆<br />
EXPORT & IMPORT SA // APRIL <strong>2011</strong>