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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>

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