A “TRUCK full of treasure” is an apt description of the investment of R410-million in the East London Industrial Development Zone (IDZ) announced this week.
The creation of 200 permanent jobs in the city is equally welcome. Economists calculate that every job in motor assemblies has a multiplier of six, indicating another 1200 people will benefit indirectly from the investments.
Johnson Controls Investments (JCI) will invest R380-million in its plant which produces overhead systems, instrument panels, door panels and cockpits. Voestalpine Stamptec , a metal shaping and stamping company, is investing R30-million
Both investments are directly linked to the decision by Mercedes Benz to award the production of the next generation C-Class luxury vehicle – known as W205 – to its South African company, MBSA, and its port-side plant in East London.
The Mercedes policy of drawing suppliers closer and receiving components “just-in-time”, helps to reduce costs, improve logistical efficiency and increase local content. As MBSA vice-president for manufacturing Arno van der Merwe put it: “Any increase in local content to us is a victory and gives us an opportunity to deepen our economic impact.”
With 35% African content, companies qualify for lower import duties into the United States in terms of the African Growth and Opportunities Act.
The ever-growing Mercedes network here is the legacy of former MBSA chairman Jurgen Schremp’s faith in South Africa and former Deputy Mayor Des Halley’s faith in the IDZ as an economic driver for the city.
IDZ chief executive Simpiwe Kondlo boasts that private sector investment in the IDZ has grown since 2009 from R600-million to R4-billion, with agri-processing, aquaculture, renewable energy, ICT and business process outsourcing, as well as vehicle manufacture.
More importantly, the productivity of the plant and the quality of its product – hundreds of Mercedes-Benz luxury vehicles every day exported around the world – is repeated affirmation of the capability of the Mercedes management, the quality of the training it invests in, and the skill and reliability of the workforce it employs.
According to Trade and Industries Minister Rob Davies: “It says the IDZ is gaining credibility and investors have confidence in it.” The rate of R2-million for each job created gives some idea of the investment South Africa needs in order to employ all its willing workers.
Border-Kei Chamber of Business executive director Les Holbrook welcomed the new technology, skills and jobs to the province.
“Investment is substantial, creating jobs is wonderful and the input into skills development is also fantastic. It’s a whole truck full of treasure.”
There can be no better advertisement for the city and the country than the success achieved by a manufacturer of Mercedes’ status operating from our soil.
Our Opinion: A truck full of treasure
The creation of 200 permanent jobs in the city is equally welcome. Economists calculate that every job in motor assemblies has a multiplier of six, indicating another 1200 people will benefit indirectly from the investments.
Johnson Controls Investments (JCI) will invest R380-million in its plant which produces overhead systems, instrument panels, door panels and cockpits. Voestalpine Stamptec , a metal shaping and stamping company, is investing R30-million
Both investments are directly linked to the decision by Mercedes Benz to award the production of the next generation C-Class luxury vehicle – known as W205 – to its South African company, MBSA, and its port-side plant in East London.
The Mercedes policy of drawing suppliers closer and receiving components “just-in-time”, helps to reduce costs, improve logistical efficiency and increase local content. As MBSA vice-president for manufacturing Arno van der Merwe put it: “Any increase in local content to us is a victory and gives us an opportunity to deepen our economic impact.”
With 35% African content, companies qualify for lower import duties into the United States in terms of the African Growth and Opportunities Act.
The ever-growing Mercedes network here is the legacy of former MBSA chairman Jurgen Schremp’s faith in South Africa and former Deputy Mayor Des Halley’s faith in the IDZ as an economic driver for the city.
IDZ chief executive Simpiwe Kondlo boasts that private sector investment in the IDZ has grown since 2009 from R600-million to R4-billion, with agri-processing, aquaculture, renewable energy, ICT and business process outsourcing, as well as vehicle manufacture.
More importantly, the productivity of the plant and the quality of its product – hundreds of Mercedes-Benz luxury vehicles every day exported around the world – is repeated affirmation of the capability of the Mercedes management, the quality of the training it invests in, and the skill and reliability of the workforce it employs.
According to Trade and Industries Minister Rob Davies: “It says the IDZ is gaining credibility and investors have confidence in it.” The rate of R2-million for each job created gives some idea of the investment South Africa needs in order to employ all its willing workers.
Border-Kei Chamber of Business executive director Les Holbrook welcomed the new technology, skills and jobs to the province.
“Investment is substantial, creating jobs is wonderful and the input into skills development is also fantastic. It’s a whole truck full of treasure.”
There can be no better advertisement for the city and the country than the success achieved by a manufacturer of Mercedes’ status operating from our soil.
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