HESTO – YAZAKI JOINT VENTURE ANNOUNCEMENT - NOVEMBER 2005

The last few years have seen increased investment by global automotive manufacturers in their local operations. As a result the demand from the majority of these OEM’s for their overseas suppliers to have an interest in South Africa has intensified. Many overseas component manufacturers have therefore either commenced operating component manufacturing establishments in South Africa or opted for shareholding in existing South African companies.

After pro-longed negotiations with Metair/Hesto, Yazaki, our licence partner for many years, has opted for a 25% shareholding in Hesto. The remaining 75% shareholding in Hesto will continue to be vested in Metair, as will be management control.

We are positive that the Yazaki investment in our organisation will be to the benefit of all role players.