The chief executive officer (CEO) of Formex Industries, Hennie Venter, was recently interviewed on Pretoria FM. Venter outlined the contribution that Formex has made to original equipment manufacturers (OEMs) and Tier 1 manufacturers in South Africa through the company’s R70-million investment.
Formex has upgraded its facilities with three new metal presses and a factory extension that has increased its production capacity. Most of the automotive components produced by Formex are used on locally-manufactured vehicles but some are exported to overseas markets.
When speaking about the investment, Venter says, “What it did for us is give us the opportunity to enlarge our capacity offering toward our clients. In Port Elizabeth, our biggest clients are Volkswagen and Ford, and during the last few months we’ve received work from Ford in Pretoria because of the fact that we have more capacity.”
“We’re also visiting BMW and because of their success in South Africa, they are also looking for new producers with bigger capacity. The other benefits that we bring to the table are that we’re a Level 2 B-BBEE company and with SAAM 2035 kicking off,” explains Venter. “The main aim of SAAM 2035 is transformation, so investors and producers are looking to work with providers that have a minimum of 25% black ownership. We offer an 80% black ownership and this is a good space for us to be in,” he adds.
“The fact that we have invested and have a bigger capacity to offer OEMs is a great opportunity for us. All the producers that are willing to invest and those who comply with the expectations and conditions of SAAM 2035 have an opportunity to play a vital role in future for the South African motor manufacturing industry,” states Venter.
Listen to the full interview below:
Formex Industries is a metal forming and assembly company that supplies a variety of complex products to the local automotive industry and export market. The company is based in the Nelson Mandela Bay metropole, South Africa’s foremost region for automotive manufacturing and export.
Formex specialises in producing components for the catalytic converter industry, as well as metal components and assemblies for the various vehicles. Formex aims to become one of the foremost suppliers for the South African automotive industry by 2035, aligning itself with the South African Automotive Masterplan (SAAM) which takes effect in 2020.
Formex is a Level 2 B-BBEE supplier with over 80% black ownership, of which more than 40% are black women. 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).