BMW SA managing director Ian Robertson has announced that three foreign automotive component makers will set up operations in the Blue IQ programme’s R1-billion automotive supplier park in Rosslyn next year.
BMW SA managing director and Naamsa president Ian Robertson has announced that three foreign automotive component makers will set up operations in the Blue IQ programme’s R1-billion automotive supplier park in Rosslyn next year.
According to , the park lies close to assembly plants of BMW, Fiat, Nissan and Ford. In locating there, tenants will theoretically be able to save on logistics and transportation.
Robertson was quoted as saying that two German firms and one French company were planning to set up their first South Africa operations in the supplier park, but he would not name the firms.
"They will be new companies to South Africa, and the investment will be quite substantial," Robertson said, adding that that buildings were being put up to house the companies.
Automotive seat maker Lear was the first company to establish itself in the supplier park, which is an initiative of the Gauteng provincial government's programme to provide pooled services for automotive component firms.
Naacam executive director Clive Williams recently estimated that by situating their operations in the supplier park, component firms could save up to three per cent on costs and “make a huge difference" to their profitability.
Blue IQ is investing R200 million in the infrastructure of the supplier park, with R800-million being sought from the private sector.
Support for the automotive sector has been identified as one of 11 Blue IQ projects. CARtoday.com recently reported that both Ford and Nissan were bidding for new export-related investment from their global parent corporations, which could give a major boost to Gauteng and provide additional demand for locally based component firms.
Original article from Car