Ray Smuts
JAPANESE vehicle component manufacturer Nihou Gaishi Kaisha's belief in the potential of the Western Cape will yield first results at the end of this month when components roll of the production line.
A world leader in the manufacture of ceramic insulation for the motor car industry - it has globally exported 400 million catalytic converters since 1998 - NGK has invested R180 million in NGK Ceramics SA, a newly-commissioned factory near Cape Town International Airport.
This is the first investment by a major Japanese vehicle component manufacturer which will produce its trademark Honeyceram - honeycomb ceramic - casings. It forms part of the Motor Industry Development Plan aimed at providing incentives to business and tax breaks in addition to import and export incentives.
The factory will employ 91 people and produce a maximum of 500 000 units a month, all of which will be exported to Europe.
Cape Town is NGK's 11th international operation specialising in catalytic converters (CC), geared to meet more stringent environmental and pollution regulations in the US and Europe.
It is the start of a supply chain delivering casings to three multinational companies with local production centres, Johnson-Mathey, Degussa and Engelhardt.
They will insert the PGM metal components which are then encased in stainless steel, which means there will be an increased demand for local stainless steel. Product worth R4 billion - 9% of world demand for converters - will be exported from South Africa this year.
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