- 35 000m2 state-of-the-art new vehicle wiring harness manufacturing facility
- Part of Metair’s +R1.4 billion investment to supply Ford South Africa automotive component contracts
- Over 4000 new employment opportunities created and supported by global skills transfer
- Project delivers on South Africa’s Automotive Master Plan to 2035 priorities
Project delivers on South Africa’s Automotive Master Plan to 2035 priorities
13 September 2022 – Metair Investments Limited (“Metair” or “Group”) – a leading international manufacturer, distributor and retailer of energy storage solutions and automotive components – and its subsidiary, Hesto Harnesses (“Hesto”), are honoured to have His Excellency, President Cyril Ramaphosa officially launch the new Hesto manufacturing facility in KwaDukuza, KwaZulu-Natal today.
The new 35 000m2 state-of-the-art Hesto facility is one of five capital investment projects which resulted in a commitment of over R1.4 billion by Metair to support the expansion and localisation of the new Ford Ranger (“The Ford Project”). Other subsidiaries involved in these projects include Unitrade 745, Automould, Lumotech and Supreme Springs, with a variety of wires, plastic and chrome plated parts, suspension parts as well as headlights and taillights being produced.
Riaz Haffejee, Chief Executive Officer of Metair commented: “This facility bears testament to the Group’s customer commitment and drive to support the sustainability of the automotive sector through enhanced localisation and global skills transfer. I am extremely proud of what the team at Hesto has achieved and extend our appreciation to our partners and other stakeholders, specifically Ford and Yazaki, for making this project possible.”
The investment commitment by Metair is an outcome of the South Africa Investment Conference held in 2020 and directly aligns with the objectives of the South African Automotive Master Plan to 2035 (“SAAM2035”), increasing localisation, developing skills and creating employment.
In partnership with Yazaki Corporation (“Yazaki”), Hesto employs world-class manufacturing skills and processes to produce wiring harnesses and instrument clusters for supply to South African based, automotive Original Equipment Manufacturers (“OEMs”), Toyota, Isuzu, Nissan, and recently added, Ford.
The new facility will produce wiring harnesses for the latest Ford Ranger and Isuzu models, which will be sold locally and abroad, and has created over 4000 employment opportunities in the region, more than doubling Hesto’s youthful staff complement which boasts 70% female representation.
William Hilditch, Managing Director of Hesto commented: “Hesto is the largest employer in the area and is proud to play its part in empowering the greater iLembe district community. The Government support to both Ford and Isuzu unlocked this opportunity for Hesto to grow its operations, both in KwaDukuza and Tshwane, and contribute significantly to employment, economic growth, skills development, and transformation. Our drive to increase localisation across our business has enhanced this impact. Our country has the resources and skills available to localise more and we believe that through closer collaboration across the value chain, there is much more that can be achieved on this front.”
Metair has driven several localisation projects in support of OEM’s and the SAAM2035 agenda through its South African-based subsidiaries. In conjunction with NAACAM, Metair is currently working on the localisation of copper, one of the core materials in the production of vehicle harnesses. This partnership with NAACAM has assisted Metair in identifying a local potential supplier. Another focus area is the localisation of polypropylene compounds, which are highly consumed materials within the Group subsidiaries. The breakthrough in the localisation of both these materials would not only translate to a more secure and stable supply chain but also contribute to job creation in South Africa. This is one of many projects that each of Metair’s South African-based subsidiaries are driving.
The Ford Project is expected to deliver on Metair’s return targets over the life of the contracts, driving meaningful growth for the Group over the medium-to long-term.
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NOTES TO EDITORS
Metair Investments Ltd (Metair) is a publicly owned company listed on the Johannesburg Stock Exchange. The Group is headquartered in Johannesburg and manages an international portfolio of companies that manufacture, distribute and retail products for its energy storage and automotive component verticals, exporting to approximately 46 countries.
Includes original equipment (OE) components used in the assembly of new vehicles, as well as spare parts and other products used in the South African automotive aftermarket. Products include brake pads, shock absorbers, lights, radiators and air-conditioners as well as generic aftermarket products for use in imported vehicles. Primary customers are the OEMs manufacturing new vehicles in South Africa as well as the local automotive aftermarket.
Manufactures batteries for use in mobility applications and in the telecoms, utility, mining, retail and materials/products handling sectors. Automotive batteries are supplied to major automotive OEMs for installation in new vehicles and sold into the automotive aftermarket through a unique aftermarket distribution channel and franchised retail network.
For more information on Metair and the group’s subsidiaries please visit the website at: www.metair.co.za