VWSA has won two major component export contracts from its parent company valued at about R350 million a year. VW says this will boost the company’s export values to more than R2 billion this year.

Volkswagen South Africa has won two major component export contracts from its parent company valued at about R350 million a year. VW says this will boost the company’s export values to more than R2 billion this year.

The Uitenhage-based manufacturer will be exporting 200 000 catalytic converters each year to be fitted to light commercial vehicles assembled in Hanover, Germany. The export order is for the lifespan of the vehicle.

The company is also making 25 000 wheelarches annually for export to Chang Chung, China, for use on Jetta 4 models.

This is in addition to the 30 000 fully-built vehicles currently exported to Europe and the Far East each year. Volkswagen exported its 175 000th unit in May since starting exports of the Jetta 2 to China in 1991.

"Every contract that we receive at Volkswagen South Africa must be secured in competition with other Volkswagen plants around the world in terms of quality, price and delivery, particularly against the cost disadvantages of our being so far from the market that we service and the impact of an unstable currency," said Volkswagen South Africa managing director Hans-Christian Maergner.

"These two contracts from the Volkswagen Group have enabled us to secure jobs within our manufacturing facility. But in the case of the catalytic converter contract it has enabled us to transfer the latest diesel catalytic converter manufacturing technology to South Africa," said Maergner.

"This has been done at an investment of R12 million in our Uitenhage facility in order to build a manufacturing cell. The catalytic converters will be used on 1,9 TDI and 2,5 TDI diesel engines. The situation concerning the wheelarches is different as we were already manufacturing these parts for our existing Jetta 4 range.

“What we had to do to meet the increased production volumes was to relocate some of the overflow production at a cost of R2 million to our Port Elizabeth plant in the Neave Industrial area, where 44 additional jobs were secured."

Volkswagen South Africa’s current exports to the Volkswagen Group include catalytic converters, leather seating sets, wiring harnesses, alloy wheels and electronic control units (ECUs).

Original article from Car