LUCIA MUTIKANI, Johannesburg | Wednesday 11.30am.
Japan’s Toyota Motor Corporation (TMC) is to invest about R180m in a catalytic converter plant in South Africa next year.
TMC President Fujio Cho said a joint venture between Toyota South Africa and Cataler Corporation would start production in the latter half of 2001 with an initial annual output of one million units.
”Toyota Motor Corporation is preparing to manufacture catalytic converters in South Africa. This new manufacturing company will become the fourth source of catalytic converters in the global Toyota network,” he said.
TMC bought a 27.8 percent stake in Toyota South Africa for R456m in 1996 from Johnnies Industrial Corp and has since concluded several joint ventures with its local subsidiary, which currently employs more than 7000 people.
The latest joint venture is expected to generate 70 new jobs and together with plans to include Toyota South Africa’s research centre, reduce manufacturing costs.
”Partly due to the weak rand and strong yen, increased local content, far in excess of current industry levels, will be required in the future,” said Bert Wessels, Toyota South Africa executive chairman.
Toyota South Africa imports the bulk of its components from Japan, but now aims to increase local content to 65% to contain soaring vehicle prices.
”This will result in the localisation of components that have not traditionally been manufactured in South Africa in the past and will result in the introduction of new technologies,” said Wessels.
TMC plans to expand Toyota South Africa’s export programme in line with the government’s Motor Industry Development Programme, targeting right-hand drive overseas markets. It currently exports mainly into Africa.
”We have a plan to include Toyota South Africa in Toyota’s world-wide production planning once the TMC’s global quality and manufacturing standards are met,” Cho said.- REUTERS