Gauteng Business 2016 edition

OVERVIEW Manufacturing

OVERVIEW Manufacturing The provincial government is placing major emphasis on the development of local manufacturing. Recent reports suggest that South Africa’s manufacturing sector has outstripped mining in terms of overall input to the country’s GDP, with the automotive sector claiming a fair chunk, while the pharmaceutical and steel sectors are in hot pursuit. Some of the world’s largest and most famous motor vehicle brands (including BMW, Ford, Nissan and Tata) have established manufacturing facilities in Gauteng. The province is also home to a thriving automotive 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 truck manufacturer FAW, which owns an assembly plant in Isando. FAW has joint venture operations with many of the world’s leading vehicle manufacturers, including Volkswagen, Toyota and Mazda. In 2010, over one million automobiles were sold through these joint venture operations. Automotive parts and components Overall production levels at this GAUTENG BUSINESS 2016 100

OVERVIEW plant were expected to double to approximately 100 000 units by 2014, creating around 800 jobs. The BMW facility at Rosslyn is a top manufacturer of the German marquee’s famous 3 Series cars and recently won a contract to make the newest model in the series. BMW’s current production is about 50 000 units per annum, approximately 80 percent of which is destined for export markets. The Ford Motor Company of South Africa has an assembly plant in Silverton, Pretoria. Ford intends to double its production volumes every year until 2016, and plans to assemble 110 000 Ford Ranger pickup trucks per year at Silverton. A number of different types of vehicles – including armoured cars and standard passenger vehicles – are produced within Gauteng. DCD Protected Mobility manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. Turning to passenger vehicles, the Nissan/ Renault plant at Rosslyn, Pretoria, produces the Renault Sondero hatchback, Nissan light commercial vehicles and the Tiida and Livina models. Tshwane automotive sector In its quest to improve economic growth, the City of Tshwane has earmarked its automotive sector as a bulwark to build the Automotive City. The Tshwane Automotive City (TAC) concept was started in 2008 as a shared vision between Government and the automotive industry to transform the City of Tshwane into a leading automotive investment destination. In June 2014, the Automotive Industry Development Centre (AIDC), the City of Tshwane (CoT) and Tshwane Economic Development Agency (TEDA) entered into a three-year partnership that will see the completion of the TAC Development Framework, Master Plan and Precinct Plan TAC concept. The TAC programme is a strategic infrastructure programme aimed at stimulating automotive vehicle assembly and components manufacturing in the Rosslyn area by accelerating the development of key infrastructure such as logistics, residential, recreational and so on through public and private partnerships. The TAC vision is based on other well-established automotive cities such as the Shanghai Automotive City in China, ‘The Autostad’ in Germany and Toyota Automotive City in Japan. The TAC programme aims to 101 GAUTENG BUSINESS 2016