FORMEX INDUSTRIES IS AN INDUSTRY LEADER SET TO ASSIST THE SA AUTOMOTIVE TRADE TO REACH THE TARGET OF 1% GLOBAL AUTOMOTIVE PRODUCTION PRESCRIBED BY SOUTH AFRICAN AUTOMOTIVE MASTERPLAN 2035 (SAAM) BEING INTRODUCED IN 2020.

Formex Industries Overview

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 makes metal parts for original equipment manufacturers (OEMs) such as Volkswagen and Ford, and has just been nominated to supply welded assemblies for the new W206 Mercedes Benz; as well as for export to North/South America, Asia and Europe. The company is a certified broad-based black economic empowerment (B-BBEE) contributor with Level 2 status.

The company employs over 550 people and is owned by Deneb Investments Limited – a Level 2-rated B-BBEE company listed on the Johannesburg Stock Exchange (JSE). In turn, Deneb is majority owned by Hosken Consolidated Investments Limited (HCI) – one of South Africa’s biggest true B-BBEE companies.

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 product offerings

The company has various product offerings for the automotive industry:

  • Metal pressing (both stainless steel and mild steel)
  • Complex welded assemblies
  • Welded assemblies
  • Laser tube welding (19mm to 76mm and 100mm to 250mm)
  • Tube manipulation

Formex specialises in producing components for the catalytic converter industry (cones, manipulated tubing, straight tubing, half shells, manifolds heat shields etc.), as well as metal components and assemblies for the various vehicles (oil sumps, clutch and brake assemblies, tunnel and sill assemblies, inner door frames, room members etc).

The company fits into two tiers on the local supply chain; First Tier as they supply parts directly to OEMs, and Second Tier as they supply to other First Tier companies as well.

Formex has a deep understanding and knowledge of world-class manufacturing processes, including lean manufacturing (waste minimisation practices that don’t compromise on productivity) and Six Sigma (a data-driven approach for eliminating product and manufacturing defects).

Formex holds IATF certification

Quality products with efficient pricing and reliable supply are absolutely key in the local automotive industry. Formex was one of the first few companies in South Africa to make the transition to the new global industry standard by the International Automotive Task Force (IATF). Formex holds an IATF 16949 certification, which guarantees quality products, efficient cost and reliable supply.

In the South African automotive industry, bids for the supply of parts are open worldwide – not just to local companies. Formex, therefore, has to compete with an international market and the IATF certification is a guarantee that the company meets global standards. Formex prides itself on having a competitive cost base with good working relationships with numerous other companies.

Formex also holds other accredited health and safety certifications (BS OHSAS 18001:2007) and environmental certifications (ISO 14001:2015).

SAAM and industry transformation

The entire automotive industry will be required to follow the guidelines set out in SAAM from 2020. There are six fundamental pillars of SAAM that will shape the future of the industry until 2035, one of which is transformation. In order to get access to government grants, businesses such as Formex need to be B-BBEE-compliant. A major contributory factor for automotive industry participants is to ensure that their supply chains incorporate other B-BBEE-compliant companies.

Formex is accredited as being a Level 2 B-BBEE supplier with over 80% black ownership, of which more than 40% are black women. Industry transformation is an important step in securing the future through skills development and equity-sharing. Employee education and skills development are a priority for Formex, ensuring that technical and management skills are improved and transferred to the local economy.

The other pillars of SAAM include local market optimisation, regional market development, localisation, infrastructure development and technology/skills development. These pillars, along with industry transformation, will help the South African automotive industry become globally-competitive and an active contributor to the national economy.

The major objectives outlined in SAAM for 2035 are for the country to account for 1% of the global vehicle manufacturing output, to include 60% local parts in vehicles manufactured in South Africa, double the number of industry employees and become a world leader in standards.

Formex has financial backing through ownership structure

Formex is wholly-owned by Deneb Investments Limited, a subsidiary of JSE-listed giant HCI. These parent companies are able to financially support Formex, which opens the doors to bigger projects that require bigger capital investments. Formex is able to form partnerships with a wider range of industry players thanks to the financial support granted by the parent companies.

As a subsidiary of HCI, Formex has links to the HCI Foundation and takes part in its charity campaigns. This corporate social responsibility (CSR) brings change to underdeveloped communities in South Africa through interactive partnerships with other HCI subsidiaries. Education and environmental sustainability are the two main goals of the HCI Foundation.


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).

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