The South African automotive sector contributed the most to the country’s manufacturing output at the end of 2022. This is according to Stats SA, which revealed that the largest positive contribution came from the motor vehicles, parts and accessories sector, which supplied 20.6% of the national output in the last three months of 2022.
Stats SA reported that overall manufacturing output decreased by 1.1% compared to the same period in 2021, but that the adjusted manufacturing production increased by 2.4% in Q4 2022 compared to Q3 2022. In total, 7 of the 10 manufacturing sectors reported positive growth rates at the end of 2022.
Formex Industries is a leading manufacturer and supplier of automotive components, assemblies and tubular products. We supply products to local original equipment manufacturers (OEMs) and Tier 1 suppliers. Formex has been a meaningful contributor to the national output and GDP for over 110 years.
Automotive sector according to Naamsa
The National Association of Automobile Manufacturers of South Africa (Naamsa) states that the automotive sector is a key contributor to the national GDP. “The South African automotive industry consists of a wide range of companies and organisations involved in the design, development, manufacturing, marketing, importation, exportation and selling of motor vehicles,” reads a statement on the Naamsa website.
“It is one of the country’s largest economic sectors by revenue. [The automotive industry is] the country’s fifth largest exporting sector out of all 104 sectors and accounts [for] 18.1% of total exports,” the statement continues.
“The Original Equipment Manufacturers (OEMs) building cars and bakkies, together with their suppliers and dealers, generate significant revenue for the SA economy and employs more than 110 000 people across its various tiers of activity (from component manufacturing to vehicle assembly),” it reads.
“Combined with the industry’s strong multiplier effect, the auto industry is responsible for more than half a million jobs across the SA economy’s formal sector… The automotive industry continues to reflect the power of combining good industrial policy and foreign investment and is not only the backbone of the industrialisation drive in South Africa but is also key to ensuring greater economic growth,” cites Naamsa.
Formex plays a key role in the sector
Formex supplies various components and assemblies to OEMs in South Africa, including Volkswagen, Ford, Mercedes-Benz and Toyota. We also export components to Tier 1 suppliers which sell to various international car brands, such as Jaguar, Land Rover, Volvo, Suzuki, Peugeot and Renault, to name a few.
2022 was a successful year for the company. We partnered with the Automotive Industry Transformation Fund (AITF), which delivers shared benefits for multinational companies operating in South Africa. This collaborative investment fund empowers all stakeholders to enact socio-economic transformation.
In addition, Formex announced yet another investment of just over R100-million to add 21 new parts and 11 different tools to our current portfolio. This expansion will see Formex become a key supplier for the VW Polo and around 139 000 cars per year for the next six years.
This investment also gave rise to a new facility to house the 1600-tonne auto transfer press in Struandale, Eastern Cape. This press will make Formex internationally competitive for bodyshop stampings, which is especially important as this will shift the company away from its traditional internal combustion engine components.
We continue to lead the sector through updated technology, financial backing and world-class skills. These compounded offerings help to increase production volumes for our customers and the manufacturing sector at large. 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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