The Tshwane Automotive Special Economic Zone (TASEZ) is officially running at full capacity now that the next-generation Ford Ranger has started production. All ten automotive component manufacturing facilities within the TASEZ are now in full production.
This designated zone in the eastern region of Pretoria was established in 2020 for the special purpose of vehicle production, with several original equipment manufacturers (OEMs) and automotive components suppliers setting up facilities on-site. It is one of only three hubs in the world that manufactures the new Ford Ranger.
The zone is the result of an inter-governmental agreement between the Department of Trade, Industry and Competition (DTIC), the Gauteng Department of Economic Development and the City of Tshwane municipality. Now that the zone is firing on all cylinders, the entire automotive supply chain in South Africa will benefit.
Formex is a leading manufacturer and supplier of automotive components, welded assemblies and tubular products. We produce various parts for OEMs, including Ford, and aftermarket spares. Although our facility is in Gqeberha, we supply parts to Ford South Africa and work closely with other businesses in the TASEZ.
TASEZ relies on public-private cooperation
DTIC deputy minister Fikile Majola says that the TASEZ is the result of a national strategy and cooperation between the government and the private sector. “The approach places an emphasis on the involvement of all three spheres of government and the private sector in the planning, development and management of an SEZ,” he says.
“The new approach presents a multipronged approach to industrial development with prominence on building partnerships with the private sector to unleash job-creating investment,” explains Majola.
Ford’s recent investment of R15.8-billion for the next-gen Ranger helped to improve the infrastructure and capacity of the TASEZ. This included the construction of a 205 000-square-metre factory that houses 10 component suppliers. Building began in January 2021 and by November of that year, three parts suppliers were already in operation.
Since February 2022, the remaining seven suppliers have taken occupancy in preparation for the production of the new Ranger. Currently, the total investment made by all 10 suppliers in the TASEZ amounts to R3.6-billion, with the ultimate goal estimated to be R4.2-billion.
2022 Ford Ranger ©Ford Media
TASEZ impact on the economy
This investment by the businesses has already created 1259 permanent jobs, but the aim is to raise this to 2080 jobs in early 2023. A total of 4848 jobs were created for the construction of the mega facility. Within Ford’s facility alone, 1200 additional jobs have been established, bringing the company’s total workforce to around 5500 employees.
A further 10 000 new jobs have been created across the entire local supply chain. The TASEZ is also a major driver of inclusive economic growth in Gauteng through the empowerment of small-to-medium-sized enterprises (SMEs) and microenterprises in the Mamelodi area.
The economic benefits of the TASEZ are far-reaching. South Africa’s automotive industry is now more competitive on the global stage. Suppliers and component manufacturers working with Ford will benefit in the long term. 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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