Formex has been a leading manufacturer of automotive components for many years, but recent achievements highlight the company’s growth and commitment to the sector. The South African automotive industry employs around 110 000 people and contributes to 6.8% of the gross domestic product (GDP).
Formex plays a core role in this industry, supplying automotive parts, completed assemblies and tubular products to various global automotive brands. The last year has seen many milestones surpassed for the company and our long-standing relationships with direct and indirect customers are a testament to the company’s growth strategy and leadership.
Formex “Vision with Action” plan
Some vehicle manufacturers have partnered with Formex through the Automotive Industry Transformation Fund (AITF), which delivers shared benefits for multinational companies operating in South Africa and a contribution to the local production supply chain. This collaborative investment fund empowers all stakeholders to take bold steps on a path toward total socio-economic transformation.
Formex recently launched its “Vision with Action” plan in a bid to increase localised supply and job creation. This future-forward plan is endorsed by the Nelson Mandela Bay Metropolitan Municipality and is built upon a solid foundation of transformation, teamwork and nurturing close relationships with our employees and business partners.
We have adopted a high-integrity employee relations policy that protects and secures our motivated workforce. In addition, our parent company, Deneb Investments, has invested over R135-million in technology and manufacturing expansion. These factors have put Formex in a key position to respond to emerging export markets.
Formex continues to lead the sector through updated technology, financial backing and world-class skills. The compounded offerings lead to increased volumes of vehicle production for our customers. The Vision with Action plan is designed to ensure excellence and outstanding performance.
Formex awarded a VDA 6.3 A-rating
Formex was recently awarded an A-rating in the VDA 6.3 process audit. VDA stands for ‘Verband der Automobilindustrie’ and the audit sets the standard for evaluating and improving controls in a manufacturing facility’s new product introduction and manufacturing processes.
VDA 6.3 looks at the entire product lifecycle of the components produced by Formex. As with all standards and regulations, there is a growing emphasis on identifying, assessing and managing risks. The audit examines change management and customer satisfaction too.
Volkswagen South Africa (VWSA) awarded Formex with the A-rating after four years of audits. In the first year, Formex achieved an 81% B-rating. This has improved year-on-year and now, Formex achieved the 90% A-rating. Formex is one of the few press component facilities to be given this top rating, which means that the company is truly an industry leader in automotive component manufacturing in South Africa.
Over the past year, Formex has expanded its long-term partnership VWSA, which was first established in the early 2000s. Currently, Formex manufactures large assemblies and stamped components for VWSA. The expanded partnership entails 33 new parts created with 42 different tools. The expansion will see Formex become a key supplier for around 30 000 cars per year for the next seven years.
“In this process, we have cemented our relationship and have VW’s full confidence in a locally transformed company like Formex. VW is serious about transformation and transforming the value chain and this is a sound example of a respected partnership,” says Formex Industries commercial executive, Mihlali Sogoni.
Recent investment in manufacturing
Formex is able to meet this high capacity primarily due to its recent investment of R70-million in new machinery, including metal presses. This has opened up new opportunities for the company as it grows its output and manufacturing capabilities.
Formex usually sources 70% of its raw materials and services from the localised region. However, for the VWSA project, in particular, more than 80% of these materials and services will come from Nelson Mandela Bay. This will inject just under R60-million per year, for the next seven years, into the Gqeberha economy.
Over the last year, various customers of Formex have invested heavily in the local economy too. Ford, Volkswagen and Mercedes-Benz are some of the car manufacturers that have directed money towards the expansion of their manufacturing facilities in South Africa. This not only improves local job creation but establishes a long-term commitment to the country and local component suppliers, like Formex.
CSR initiatives at Formex
In terms of corporate social responsibility, Formex has been involved in an ongoing project to restore a school in Gqeberha. Aaron Gqadu Primary School is located in Kwazakhele 2 and Formex reached out to suppliers to assist with rebuilding and restoring the school to a leading educational institution in the region.
This project improved the quality of local education, but also positively impacted the lives of the children and teachers that attend the school. This initiative completely restored classrooms, lights, doors, windows, and painting to a high standard. It also upgraded the kitchen and toilets, while financial contributions from various suppliers helped to purchase new materials and supplies – including books for the new library.
The school restoration also included a rugby field and the establishment of a long-term coaching partnership between the school, The Atlas Foundation, Grey Junior School & Grey High School. This has already helped to improve community relations and the learners’ health and well-being through sports and collaboration. For more information about our components and products, please contact us today.
Formex Industries is a metal forming and assembly company that supplies a variety of complex products to the local automotive industry and the export market. The company is based in the Nelson Mandela Bay metropole, South Africa’s foremost region for automotive manufacturing and export.
Formex is a Level 2 B-BBEE supplier. The company is owned by Deneb Investments Limited – a subsidiary of Hosken Consolidated Investments Limited (HCI) – one of South Africa’s biggest true B-BBEE companies listed on the Johannesburg Stock Exchange (JSE).
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