MAXION WHEELS
MAXION WHEELS
Another Example of SA
Automotive Excellence PRODUCTION: Karl Pietersen
Maxion Wheels has an exciting future on the road ahead as it gears up to open a new facility and becomes the leading supplier to one of the world’s great automotive manufacturers. A long and varied story, and a hand in almost every innovation of the wheel in history, this is a company that is a true industry leader. 2 / www.enterprise-africa.net
INDUSTRY FOCUS: AUTOMOTIVE
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South Africa’s automotive sector is of vital importance to the country’s ailing economy. Reports suggest that more than 900,000 people are employed, directly and indirectly, by the industry which contributes more than R250 billion to annual GDP figures. But now, with South Africa once again facing technical recession, the country cannot afford to let this valuable and significant sector slide the way of mining and manufacturing which seem to have taken a downward route from which there is no return. This is why South Africa needs industry-leading organisations to step
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// THE LAST SIX YEARS BEEN REALLY GOOD, AND WE HAVE SEEN A REAL TURN AROUND // up and promote the excellence that the country has become known for. Fortunately, there are many examples and there is a lot of work under way to attract more international organisations to South Africa so that big businesses can take advantage of the growing automotive market across the continent. One company that has been in South Africa for decades is Maxion Wheels (a division of IOCHPE-MAXION S.A.). Headquartered in Michigan, USA and Ladestraße, Germany, Maxion
Wheels is globally renowned for the manufacture of top-quality products for almost all of the worldwide vehicle original equipment manufacturers (OEMs). The company we see today is the result of mergers and acquisitions from the past century, and this amalgamation of skills from all of the organisations make for a powerhouse corporate business. As the global Maxion Wheels business celebrates 110 years of success, its South African subsidiary is looking
MAXION WHEELS
forward to a bright future with many exciting projects in the pipeline. Located just south of Johannesburg’s central hub, Maxion’s South African factory has been in existence since 1965. The factory was initially focused on the manufacture of aluminium wheels (established as NF-Die) but today is able to produce a range of aluminium, steel and various other products for light, heavy and agricultural vehicles. Milos Despotovic is the Plant Manager in Johannesburg and he tells Enterprise Africa that as well as entering into exciting new partnerships with global manufacturers based in SA, the company is also planning a new facility for East London and is looking at increasing its export drive. “The last six years been really good, and we have seen a real turn around,” he says. “We have increased capacity to meet demand in general, and we are exporting to Europe (UK and Czech Republic) as well as servicing the local market. Our factory is up to 320 staff and we are discussing a new plant in East London. “We are also set to become the sole supplier to BMW in South Africa and that is something which we are extremely proud of.” QUALITY PRODUCTS BMW is one of Maxion Wheels largest clients in South Africa and the two companies share global presence. It is the goal of Maxion to live by its motto of “No matter where a Maxion wheel is made, it’s made exactly right” and its 28 locations worldwide are all capable of delivering international quality. In South Africa, BMW announced last year a R160 million facelift at its Rosslyn plant in order to begin production of the new X3 model and take capacity beyond 75,000 units each year. Along with new high-tech robotic production aids, BMW SA announced that it would also export the X3 model
to Germany, Belgium, Italy, Austria, Portugal, Malta, Sweden, France, Greece, Croatia, Slovenia, Denmark, the United Kingdom and Spain. Maxion Wheels has brokered a deal with BMW to become the sole supplier in South Africa, helping to drive growth of the business. This will help drive traffic through the company’s planned
new facility in East London. Globally, Maxion Wheels continues to expand its operations by opening new facilities. In India, the company committed $50 million opening a new, two million per year, 25,000 m2 wheel manufacturing centre which will create another 1000 jobs to add to the company’s global workforce of more
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INDUSTRY FOCUS: AUTOMOTIVE
// MAXION WHEELS IS COMMITTED TO SERVING ITS CUSTOMERS’ GROWING DEMAND FOR LIGHT VEHICLE ALUMINIUM WHEELS // than 10,000. “Maxion Wheels is committed to serving its customers’ growing demand for light vehicle aluminium wheels, especially in India where market growth is outpacing available capacity. We’ve been in India for more than 20 years, providing original equipment manufacturers with light and commercial vehicle steel wheels. We’re
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pleased to satisfy our global customers’ growing request that we bring our recognised global aluminium wheel expertise to India, and we are excited about the opportunity our new plant will afford us to strengthen our global footprint and strategically expand our presence in the region,” said Chief Executive Officer of Maxion Wheels, Pieter Klinkers.
INTERNATIONAL RECOGNITION The vote of confidence in Maxion delivered by BMW in South Africa is not unique for the company. Globally, Maxion Wheels is recognised as the industry leader and one of the founding players in the wheel industry. That is why almost all of the major automotive names around the world trust Maxion to deliver what is required. In June, Maxion was lauded for its partnership with Michelin where the two companies picked up the 2018 CLEPA Innovation Award for Cooperation. CLEPA is the European Association of Automotive Suppliers
MAXION WHEELS
and said the Maxion and Michelin partnership, where the two companies developed the ACORUS Flexible Wheel, was a meeting of two pioneers. “The automotive industry is undergoing a major transformation and collaboration is key to success in this fast-moving business environment,” said Klinkers. “It not only strengthens and accelerates innovation, it enhances our knowledge and expertise. The ACORUS Flexible Wheel is the result of two global leaders pooling their knowhow to deploy the MICHELIN ACORUS Technology into an innovative product for the passenger car market.” Introduced at the IAA Cars 2017 in Frankfurt, Germany, the ACORUS Flexible Wheel is a newly designed wheel-tire combination built to withstand tough road conditions and keep drivers and passengers safe. The patented new technology incorporates two flexible rubber flanges mounted on a special wheel body to create a flexible wheel that improves driving comfort and absorbs impacts from potholes and curbs. ALWAYS DRIVING FORWARD Next on the agenda for Maxion Wheels at global level is to continue developing relationships with its valued clients and constantly innovating to ensure its product range remains competitive and reliable. In South Africa, with its upcoming investment plans set to solidify its position in a competitive market, the focus for the company will be on
// THE AUTOMOTIVE INDUSTRY IS UNDERGOING A MAJOR TRANSFORMATION AND COLLABORATION IS KEY TO SUCCESS IN THIS FAST-MOVING BUSINESS ENVIRONMENT //
Interpon A4000 High quality powder coatings
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ensuring the wider automotive industry receives the attention it needs to attract further international investment. The goal for South Africa’s automotive industry is to grow its contribution to meet 1% of the world’s demand for vehicles, and of course this has a knock-on effect on suppliers of components. Currently, the country delivers around 0.6% of global supply and has to compete with North Africa for the title of the Africa’s biggest automotive industry. At the beginning of October, it was announced that Morocco had surpassed South Africa as the continent’s largest automotive exporter and Morocco’s government has announced its ambition to exceed MAD 100 billion (more than $10 billion) in export sales by 2020. South Africa has responded by releasing details of a proposed automotive code of conduct
which would change the way the local vehicle ownership structure is set up, allowing for more competition in the spare parts and servicing industry. “If we want an economy that is creating jobs, then we really have to support Small to Medium Enterprises (SMEs), such as the thousands of independent workshops scattered across the country,” said Filum Ho, Managing Director at Autoboys and vice Chairman of the Right to Repair campaign. Whatever happens, it is likely that Maxion Wheels will remain an undoubted industry leader and, it’s ever-present South African division will continue to deliver on its international reputation for reliability.
WWW.MAXIONWHEELS.COM
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