OVERVIEW
Manufacturing Corobrik’s new factory started producing product in 2021.
SECTOR INSIGHT Several Metair subsidiaries will benefit from Ford’s expansion.
Ford’s expansion project at Silverton will create jobs along the value chain. Credit: Ford Motor Company
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new factory in Carltonville produced its first bricks in 2021. The R800-million Corobrik Kwastina factory has reduced costs in the manufacturing process by 50% and consumes 70% less gas than previous methods. At full capacity, Kwastina will be able to produce 100-million bricks per year. Manufacturing contributes 14% to Gauteng’s real economy output and provides 40% of South Africa’s manufacturing overall. Manufacturing related to the mining industry, historically the lynchpin of the Gauteng economy, is still important. Employer organisations like the Manufacturing Circle and government at national and provincial levels are engaging in initiatives to grow the sector, including incentives such as the Manufacturing and Competitiveness Enhancement Programme (MCEP) of the Department of Trade, Industry and Competition (dtic). Sectors that have received support include plastics, pharmaceuticals, chemicals, metal fabrication, transport equipment and agri-processing. The Support Programme for Industrial Innovation (SPII), run by the Industrial Development Corporation (IDC) on behalf of the dtic, promotes technology development. Original equipment manufacturer Ford announced a $1-billion investment in South Africa in 2021. Expanded production (to installed capacity of 200 000 units) at the company’s Gauteng plant
GAUTENG BUSINESS 2022
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will create 1 200 direct jobs and a further 10 000 jobs along the supply chain. I n response to Ford’s investment, auto component and batter y manufacturer Metair will establish a new logistics facility at Silverton. Several Metair subsidiaries, including Hesto Harnesses, Unitrade, Automould and Lu m o t e c h , h a v e s i g n e d agreements to supply Ford with a wide range of products. All of Gauteng’s large automobile manufacturers are investing in new model production. Nissan is spending R3-billion on production of the Navara pick-up vehicle. Other major investments include R6.1-billion by BMW at Rosslyn and R260-million by BMW on an expanded campus at Midrand. UD Trucks, a part of the Volvo group, will assemble the Croner heavy commercial vehicle at Rosslyn. Gauteng is also home to a s t ro n g a u to m o t i ve components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese
