The latest developments at Formex were featured on a live broadcast of Algoa FM, the Eastern Cape’s number one radio station. Formex chief executive officer (CEO) Hennie Venter explains the company’s plan for growth and investment in the coming years.
Formex is aiming to create 100 permanent jobs at its operations in Port Elizabeth through an investment of R70-million. “We’ve been fairly fortunate in the automotive industry where the government has looked after it very well, so our business is growing quite nicely,” says Venter.
“We have to expand our capacity so we are busy putting in the investment – three new presses to the value of R70-million,” explains Venter. “We also will make 80 to 100 people permanent [employees] … so the job creation side of it is going well,” he says. Formex already employs around 500 people, so adding another 100 to their team will improve the livelihoods of those living in Nelson Mandela Bay.
Formex supplies a number of automotive Original Equipment Manufacturers (OEMs) in South Africa, such as Toyota and Nissan. Nissan South Africa recently announced its plan to invest R3-billion to upgrade its manufacturing plant in Pretoria.
“Investments like Nissan are very positive for us – it’s a market for us. Mercedes invested R10-billion some time ago, so that’s positive for us. Volkswagen expanded their plant. So all these investments that the OEMs are doing is very positive; it creates a bigger market for us,” explains Venter.
Listen to the full sound clip that was broadcast on Algoa FM:
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).