Formex Industries chief executive officer Hennie Venter was interviewed on Winslyn Ekonomie by the host, Divan Botha. The business and economics show is aired on kykNET. The topics of discussion during the show revolved around automotive manufacturing as well as 3D printing technology in South Africa.
The country is Africa’s largest vehicle producer and exporter, manufacturing over 640 000 vehicles every year. In 2018, South Africa was accountable for 0.64% of the new vehicles manufactured around the world. The aim of the entire industry is to reach 1% of global vehicle production by 2035 and to include 60% local parts in vehicles manufactured in South Africa.
During the interview, Venter spoke about the work that Formex is currently doing in the automotive sector, as well as the R70-million investment made by the company to expand its offerings. “We’ve just invested R70 million by bringing in three new presses that are now ready to produce, so what we’re doing now is to go out and speak to all our clients to ensure that we reach capacity on these machines and hopefully also create work opportunities by doing so,” he says.
Venter also spoke positively about the state of the vehicle manufacturing sector in South Africa and how industry stakeholders are working together to achieve common goals, as laid out by the government in the South African Automotive Masterplan (SAAM 2035).
“I think the motor industry is one of the industries in South Africa that is a real success story. And in future, there will be even more support. The government wants to produce more vehicles and more parts in South Africa. And they are committed to fewer imports. So we’re definitely seeing a big future for the motor industry in South Africa,” says Venter.
He believes that small enterprises certainly have a role to play in the automotive supply chain which bodes well for the future of the industry. “There is a big focus on transformation and this is where many of the bigger companies greatly support smaller companies. Some of the incentives given by the government are very much focussed on transformation. So we’re very positive about the motor industry and how things pan out over the next 5 to 10 years,” says Venter.
Watch the kykNET interview clip 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).