German components firm opens R178m Uitenhage facility

DAVID POWELS, Volkswagen SA Managing Director, says Benteler is key to VW Group SA's business strategy to increase the local content on the new Polo and the Polo Vivo “Benteler is key to VW Group SA’s business strategy to increase the local content on the new Polo and the Polo Vivo to in excess of 70%,” adds VW Group SA MD David Powels.

Benteler, together with other parts manufacturers – Faurecia, Grupo Antolin, Rehau and Flex Tech – has invested more than R700-million and created more than 600 jobs in the logistics park in the past 12 months, he says.

“Importantly, this investment enables VW Group SA to manufacture in excess of 120 000 vehicles a year for both the export and domestic markets. It is exactly this level of investment that helps provide an original- equipment manufacturer (or car manufacturer), with a hedge against the threat of imports to the South African automotive manufacturing industry,” says Powels.

“Four years ago, VW Group SA commenced a R5-billion investment programme in new plant, new technologies, new product and the required people skills development. One of the fundamental pillars of this ambitious investment programme was to take local content levels from below 40% to in excess of 70%. Together with Benteler and our other suppliers, we have achieved this.”

Edited by: Martin Zhuwakinyu source: Engineering News