Formex has joined 15 other companies in a multi-billion rand pledge to invest in the South African automotive sector. The R4.8 billion pledge was announced at the National Association of Automotive Component and Allied Manufacturers (Naacam) Show, which took place at the end of August 2023.
South Africa’s minister of trade, industry and competition, Ebrahim Patel, says that this multi-lateral pledge is a strong vote of confidence in the South African economy. Naacam CEO, Renai Moothilal, has confirmed that a total of 16 exhibitors at the Naacam Show 2023 committed to various investments which will be implemented from now until December 2024.
All of the companies, including Formex, operate in the component manufacturing segment, but include a mix of domestic and international manufacturers. According to Minister Patel, the investment pledges will support more than 10 000 jobs across the supply chain, which will give a considerable boost to the local automotive economy.
As a leading automotive component manufacturer and supplier in South Africa, Formex is proud to stand alongside the 15 other companies and commit to improving the local automotive sector. Formex has invested over R140 million towards technology and manufacturing expansion projects.
These upgrades include a R102 million investment in our new manufacturing facility in Struandale. This has put us in a key position to respond to emerging export markets. As part of these investments, Formex has also installed new 1600-tonne auto transfer presses at the Struandale plant.
Pledge creates a conducive environment for businesses
The private sector pledge shows that companies are committed to South Africa. Minister Patel states that the government must now respond and help to create a conducive environment in which manufacturers can thrive and have confidence in their ongoing investments.
By working together, the private sector and the government can create thousands of jobs and support a growing economy based on industrial development. In addition, two of the companies that made pledges are beneficiaries of the Automotive Industry Transformation Fund (AITF), which Formex has supported since its inception.
This pledge is a sign of trust from the local private sector. The commitments made show a willingness to collaborate for the benefit of the local economy and to meet the goals outlined in the automotive master plan for 2035.
Naacam Show 2023 was a hit
This automotive expo is the premier platform for connecting automotive original equipment manufacturers (OEMs), suppliers and industry experts within South Africa. It took place in Pretoria on 30 and 31 August 2023 and was attended by thousands of people and over 130 exhibitors. The next Naacam Show is scheduled for 2025.
Formex was one of the exhibitors at this year’s event. We had the opportunity to showcase our wide range of products, automated manufacturing capabilities and cutting-edge technology from our new factory.
Formex has built a reputation for excellence, innovation and reliability, and this expo was our chance to highlight our state-of-the-art production facilities and equipment. As a result, we are able to meet the high capacity demands of OEMs like VW, Ford, Toyota and Mercedes-Benz.
By contributing to the R4.8 billion investment pledge, we remain committed to improving the local automotive sector. South Africa currently manufactures around 556 000 vehicles every year, generating R193 billion in new vehicle sales. The aim is to improve these statistics and help make South Africa a more attractive manufacturing hub for global OEMs. 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).