Eastern Cape
South Africa
Sector
Automobiles
Delivery Services/Logistics
Electronics
Infrastructure
The Eastern Cape is home to four original equipment manufacturers (OEMs) - Volkswagen,
General Motors, Mercedes Benz (South Africa) and Ford. The province also boasts more than 180 component suppliers which support the local and national manufacturers as well as supply export markets with a range of components and spares.
Opportunities for component manufacturers and OEMs at the East London IDZ
The
Automotive Supplier Park (ASP)
The East London IDZ is home to the country’s third new, purpose-built ASP and houses world renowned manufacturers such as Johnson Control, Feltex, Feltex/Caravelle, Eurofit and TI Automotive.
Features of the ASP:
- A consolidated factory layout design with production flowing towards a central tugger-route which links most ASP manufacturers
- Centralised logistics services where ASP tenants use one logistics service provider and are able to reduce costs
- Centralised state-of-the-art information and communication technology is in place
- Shared services and facilities such as canteen, medical centre, conferencing, security services and general maintenance drive operational costs down.
Benefits of the ASP:
- Dedicated utilities and other services that are designed to assist and stimulate auto sector industrial productivity, expansion and export competitiveness
- Time and cost savings result from shared logistics and supply chain arrangements
- Comprehensive package of industry support assistance including substantial national trade and export promotion incentives
- Close proximity to local OEMs with easy access to road, rail and air transport.
Opportunities at the ASP:
Over 30 opportunities have been identified and include, amongst others, immobilisers, fuel injectors, light and instrument clusters, satellite tracking mechanisms, acoustic systems, plastic mouldings and paintings, door trim panels and centre consoles.
OEM opportunity
Accommodation for an OEM has been allowed for in the zone’s first phase.
Features of the OEM opportunity:
- A reserved and purpose built industrial land for an OEM
- Dedicated utilities and other services that are designed to assist and stimulate auto sector industrial productivity, expansion and export competitiveness
- Shared logistical and supply chain arrangements help saving time and other costs
- Comprehensive package of industry support assistance including substantial national trade and export promotion incentives
- Close proximity to local ASP with easy access
- Close access to world class vehicle export terminal
Benefits of the OEM opportunity:
- Improved and stable supply chain process
- Decreasing inventory and holding cost as the ASP is within a kilometre radius
- Opportunity for additional supplier development as land has been reserved
- Lowering of infrastructure investment and increased flexibility, ie warehousing
- Synergy created among Tier 1, 2 and 3 suppliers
- New model launch flexibility
- Established competent suppliers within the region
Premier location for auto industry’s three tiers
The Eastern Cape’s automotive sector plays a pivotal role in maintaining the country’s position as a formidable automotive competitor in Africa and the world and is home to four original equipment manufacturers (OEMs), all of which are involved in world-class assembly, production and export programmes.
For more information on the ASP or the OEM opportunity contact Ayanda Ramncwana at ELIDZ on +27 43 702 8200 or email ayanda@elidz.co.za
