Eastern Cape
South Africa
Sector
Automobiles
Infrastructure
Manufacturing
Opportunities for component manufacturers and OEMs
1. The Automotive Supplier Park (ASP)
The East London IDZ is home to the country’s third new, purpose built ASP and houses investors from the automotive cluster which includes world-renowned manufacturers like Johnson Control, Feltex, Feltex/Caravelle, Eurofit and TI Automotive.
Features of the ASP include:
- 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
- Centralised state-of-the-art information and communication technology and necessary basic infrastructure in place
- Shared services and facilities (canteen, medical centre, conferencing, security services and general maintenance).
Benefits for component manufacturers:
- Dedicated utilities and other services designed to assist and stimulate auto sector industrial productivity, expansion and export competitiveness
- Time and cost savings from shared logistical and supply chain arrangements
- Comprehensive package of industry support assistance including substantial national trade and export promotion incentives
- Close proximity to local OEMs, easy access to road, rail and air transport
- Established base of automotive skills in the Eastern Cape
- Increased stability in supply to customers.
2. The OEM opportunity
Accommodation for an OEM has been allowed for in the zone’s first phase, the features of which include:
- Reserved and purpose built industrial land for an OEM
- Dedicated utilities to assist and stimulate auto sector industrial productivity, expansion and export competitiveness
- Time and cost savings from shared logistical and supply chain arrangements
- Comprehensive package of industry support assistance - substantial national trade and export promotion incentives
- Close proximity to local ASP with easy access to transport networks
- Established base of automotive skills in the Eastern Cape
- Provides a case for the ASP’s phase two development.
Benefits for the OEM
- 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
- 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:
- Volkswagen SA (Golf 1, 4, 5 and Polo models for local and export markets)
- General Motors (Isuzu, Opel and Hummer H2)
- DaimlerChrysler SA (right-hand C-Class Mercedes Benz vehicles)
- Ford (Ford RoCam engines)
The province also boasts more than 180 component suppliers who support the local and national manufacturers as well as supply export markets with a range of components and spares.
Tier 1, 2 and 3 component suppliers include the three biggest tyre companies – Goodyear, Bridgestone and Continental – as well as producers of engine plants, battery manufacturers, automotive leather tanners,
foundries, and catalytic converter component manufacturers and assemblers. The province supplies nearly 11% of the world's passenger vehicle catalytic converters.
For more information on the developments within the sector in the Eastern Cape, contact the East London IDZ.
