Formex Industries has recently received an updated broad-based black economic empowerment (B-BBEE) accreditation. We are now a Level 2 B-BBEE contributor, which holds a number of benefits for our customers and suppliers. Formex is a leading manufacturer and supplier of automotive components, welded assemblies and tubular products to a variety of South African industries.
This means that a number of our customers can benefit from doing business with us. B-BBEE is an equality system that was put in place by the South African government in 2003. The goal is to share wealth across a broader range of employee demographics, especially those from previously disadvantaged communities.
B-BBEE essentially measures the non-white percentage ownership of businesses and enterprises, as well as the representation of non-whites in management positions. Companies are assessed by an independent panel and are given a score based on certain criteria. These scores range from ‘Non-compliant’ (the lowest) to Level 1 (the highest).
How the B-BBEE score is assigned
The higher the accreditation level, the more benefits a company is entitled to. These include a preferential consideration for government tenders and a larger balance of state funding. The B-BBEE system is points-based; there are five criteria that assessors look at when assigning a score:
- Ownership (25 points) – What percentage of the business owners are non-white?
- Management control (15 points and 4 bonus points) – What percentage of the management structure comprises non-whites?
- Skills development (20 points and 5 bonus points) – What skills development and training opportunities are offered to employees?
- Enterprise and supplier development (40 points and 4 bonus points) – Does the company support other businesses and suppliers that are B-BBEE rated?
- Socio-economic development (5 points) – Does the company contribute to the socio-economic development of its employees, community and country?
According to the points awarded by the assessors, a company will be assigned a B-BBEE accreditation as follows:
- 100+ points – Level 1
- 85 to 99 points – Level 2
- 75 to 84 points – Level 3
- 65 to 74 points – Level 4
- 55 to 64 points – Level 5
- 45 to 54 points – Level 6
- 40 to 44 points – Level 7
- 30 to 39 points – Level 8
- Less than 30 points – Non-compliant
Formex Industries is a Level 2 B-BBEE contributor
At Formex, black ownership equates to 69,13%, of which 39,31% are black women. Similarly, a large portion of our overall management structure comprises non-whites. Formex is owned by Deneb Investments Limited, which is a subsidiary of Hosken Consolidated Investments (HCI). The B-BBEE ratings awarded to these two enterprises also have an influence on our rating.
We believe that industry transformation and the development of our employees are important steps toward a more prosperous future. Skills development and training are vital initiatives that benefit not only our employees but our business as a whole. Formex also takes part in community initiatives, such as school refurbishments, as part of the B-BBEE initiative.
As a Level 2 contributor, Formex has no doubt that initiatives are beneficial to South Africans. They help to empower employees and make our society better for everyone. 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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