First IDZ tenants open for business

German manufacturer joins forces with BEE company ED RICHARDSON THE FIRST operational automotive component manufacturer in the East London IDZ, Foxtec-Ikhwezi, comes as a joint venture operation between German automotive supplier Otto Fuchs and the Black Empowered Ikhwezi Investment Holdings. The 4000m2 factory, which is situated in Zone 4 of the IDZ, is a world-class manufacturing plant that the company says houses technology new to the South Africa. Through this, hot forging processes and machining of a local raw material for the automotive sector will be possible and in turn help generate business interest from national Original Equipment Manufacturers (OEM) to manufacture related component parts. Foxtec-Ikhwezi has already started commissioning and exporting products to Germany for testing. The company expects production to increase to 4.5 million in 2008, while some 80% of parts are expected to reach the export market. DaimlerChrysler will take up 20% of production for the new C-Class Mercedes Benz model.