It is also involved in the manufacturing of precision tubes and hydro-formed components. Its customers include Mahindra, Tata Motors, General Motors India and Hyundai.
Excluding South Africa, KLT has 11 operating plants. In 2009, Ford launched a global pick-up programme for serving Asia through Thailand, Europe and Africa from South Africa.
Although it already had a vehicle assembly plant in South Africa, it was looking for local suppliers. In the same year, Ford approached KLT to set up a green-field facility in South Africa to serve chassis frames to its T6 programme vehicles.
KLT started the project in 2010 with Japan's Audio Engineering Society as the project management and technology partner. The total cost for setting up the plant in Babelegi, Hammanskraal, just north of Pretoria was approximately R217-million.
It is situated about 50km from the Ford manufacturing plant in Silverton. KLTA assisted its South African subsidiary with R62-million in funding, with the balance coming from the Industrial Development Corporation.
The existing building and land were bought for R9-million and another R34-million was spent on upgrading the existing building and constructing for the new factory.
In addition, KLT developed more than 600 dies and tools at the plant. Ford financed the robotic welding automated assembly line for frames to the tune of R138-million. Ford owns these tools, but KLT uses and maintains them. The plant was commissioned in 18 months with best-in-class equipment and tools and begun operations in September 2011.
The company reached global-level dimensions and accuracy at the plant within four months, while other global players on the Ford contract took up to 12 months to accomplish this.
KLT has approximately 700 employees working in South Africa. The local employees who manage the plant are all from reputable manufacturers like Toyota, GM, Ford, Land Rover and Nissan. The plant has the capacity to assemble 100 000 chassis a year.
It is also in close proximity to other potential customers, such as Nissan and General Motors, which are also based in Pretoria. The Rosslyn Automotive Park, consisting of many other automobile companies, is located within 55km of Babelegi.
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