Japan singles out SA as Nissan's component export hub

Leonard Neill
EXPORTING WHEEL rims and exhaust systems for Nissan heavy-duty vehicles from South Africa to Japan may sound like an automotive version of sending coals to Newcastle, but that is precisely what the recently formed Nissan Diesel South Africa (NDSA) has on the planning boards.
The company's Japanese controlling group, Nissan Diesel Motor Company (NDMC), has announced an aggressive restructuring programme aimed at concentrating on core business and markets. With a direct focus on heavy-duty trucks in five key markets, China, the US, Indonesia, Malaysia and South Africa, it has singled out South Africa as the most suitable for greater export dealings.
Manufacturing the wheel rims and exhaust systems in this country for export purposes will allow the South African company to benefit from rebates under the national Motor Industry Development Programme (MIDP), says South African vice-president Johan Richards.
The MIDP is an export/import arrangement in which local content of components for built-up vehicles exported earns credits which lower import duty on components and vehicles.
Nissan Diesel South Africa assembles trucks at Rosslyn, north of Pretoria, from knocked-down kits received from Japan. About 2 000 are sold annually into South Africa, but only about 120 are exported again every year.
This export figure is expected to be doubled but it will be in the component field that the new subsidiary will focus attention to enjoy benefits available and to play a greater role in South Africa's export drive.
NDSA will become a fully-fledged subsidiary of NDMC in July.