First established four years ago, the East London Industrial Development Zone (IDZ) Company has transformed a 455ha greenfields site into a world-class industrial zone, ideal for cleaner, high value-adding industries such as automotive, agro-industry and information and communication technology (ICT).
Located in one of the most beautiful of South Africa’s nine provinces, the Eastern Cape, the East London IDZ is now the country’s first operational zone, attracting investors and operating a highly efficient Automotive Supplier Park (ASP).
The aim of the IDZ programme, an initiative of the Department of Trade and Industry, is to provide a platform for the zone’s manufacturers to become globally competitive as exporters. The results of this strategy are borne out by the increased production and export of several components by manufacturers housed in the zone that supply markets such as Germany and the United States of America.
Furthermore, the Automotive Supplier Park’s construction demonstrates how the East London IDZ management team has successfully straddled the demand of providing world-class infrastructure as well as crafting solutions which meet exacting investor needs.
The ASP, built in a record six months, met all global standards as specified by investors and DaimlerChrysler South Africa (DCSA). DCSA was awarded a multi-million rand contract to produce the new Mercedes Benz C-Class model which is exported to the East, among other regions of the world.
The ASP houses seven automotive investors involved in this project. This number is to grow further with the imminent announcement of further automotive component manufacturers which are able to leverage their location into just-in-time and just-in-sequence supply.
Amongst the tenants are influential automotive component manufacturers Foxtech-Ikwezi, Feltex, Eurofit and TI Automotive.
This automotive cluster demonstrates the zone’s cluster approach which includes centralised logistics services and shared amenities that lower the logistic costs for suppliers as well as streamlining supplier operations.
Furthermore, through the development of the ASP, the East London IDZ has assisted in localising key auto-component manufacturers and suppliers. This has contributed to local content improvements, streamlining manufacturing operations and enhancing efficiencies in supply chains for original equipment manufacturers that are based in South Africa. It has succeeded in increasing exports from the city as a number of component manufacturers housed in the zone supply exports markets as far away as Germany.
Currently, the East London IDZ is investigating the establishment of an agro-industry cluster, currently represented in the IDZ by aquaculture through the abalone operation, Seatek. This may include other elements such as forestry beneficiation and biofuel production.
For more information, contact the East London IDZ Business Development team or visit their website.
