Formex Industries is gearing itself for new projects that are planned for Volkswagen South Africa (VWSA) and the expected localisation drive from other automotive original equipment manufacturers (OEMs). This latest R102-million investment commitment announced by Formex at the South Africa Investment Conference, which took place on Thursday, 24 March 2022 at the Sandton Convention Centre in Johannesburg, comes on top of the R200-million already invested by Formex over the past four years.
Formex has secured a new contract with VWSA that will enable it to purchase outright a new facility in Struandale, Gqeberha, as well as to extend and upgrade it to bring it in line with international standards and equipment. Formex will purchase one of the largest auto transfer presses in the country to boost capacity. The deal will also help us to create more local jobs than the 100 already created since 2018 and contribute more to the entire automotive supply chain.
This latest planned contract will enable Formex to manufacture more than 20 new automotive components that were previously made in Portugal. Not only will this enhance localisation but it will also cut out delivery delays and cost increases due to importing components for locally-made VW vehicles.
Other brands will benefit from the new facility
Although VW is the OEM that enabled this investment, other OEMs have supported the need for this investment. Ford, Mercedes-Benz, Isuzu, Faurecia, Purem and Toyota have supported Formex as a direct and indirect supplier of automotive components. Most of our customers will at some point in time also benefit from the new facility and equipment that will be purchased.
Our employees, Deneb Investments Limited and our social partners, including The Nelson Mandela Bay Municipality, the Department of Trade, Industry and Competition and the Automotive Investment Transformation Fund (AITF) have also contributed to our current production capacity increase, through hard work, grants, incentives and funding. All these partners, departments, institutions, and financial organisations have supported Formex throughout recent years.
The South Africa Investment Conference was launched in 2018 and it attracts delegates from around the world. It is intended to showcase the investment opportunities available in South Africa. To date, the event has facilitated over R1,1-trillion in investments into the country.
For more information about the Formex automotive components and products, please contact us today. Below is a gallery of images from the South Africa Investment Conference. Our CEO, Hennie Venter, met on stage with President Cyril Ramaphosa when the announcement was made.
Below is a sound clip from a news broadcast on Algoa FM that delves into more detail on this investment and new facility:
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 supplier with 69% black ownership, of which 37% 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).
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