South32 Hillside Aluminium has partnered with the Automotive Industry Transformation Fund (AITF) and the Department of Trade, Industry and Competition (dtic) to provide around R200 million in concessional financing to support Bingelela Alloys’ continued production of rim alloys in Richards Bay.
Hillside Aluminium supplies Bingelela Alloys with liquid aluminium, which is manufactured into a rim alloy product at its semi-fabrication facility at the former Bayside Casthouse.
The product produced by Bingelela Alloys is supplied to Maxion Wheels and Borbet, and reaches six out of the seven local Original Equipment Manufacturers in South Africa, including BMW and Toyota.
The financing will enable Bingelela Alloys to buy two new furnaces and relocate the rim alloy casting line within the Casthouse, enabling improved production and supporting the sustainability and growth of the downstream aluminium industry in South Africa.
South32 Hillside Aluminium Vice President Operations, Calvin Mkhabela, said the company was proud to support Bingelela Alloys.
“Its rim alloy products are supplied to some of the world’s largest and prestigious automotive manufacturers after further processing.
“As the only producer of primary aluminium in South Africa, downstream manufacturers like Bingelela Alloys depend on the liquid aluminium supplied by Hillside Aluminium on competitive terms, to support the growth of the local industry and create local jobs in the Richards Bay area.
“We will continue to help South Africa’s downstream aluminium industry to grow and to play a leading role in accelerating its development.”
He said the company was also assessing other potential opportunities for the downstream aluminium industry in Richards Bay.
Bingelela Alloys Chairman of the Board, Sipho Zikode, said the partnership was a prime example of how targeted, strategic collaboration between the private sector and government could drive industrialisation.
“It demonstrates a shared vision for achieving high industrial growth and fostering economic prosperity.”
AITF Chief Investment Officer Tshepo Rapudi said the fund was proud to collaborate with South32, Hillside Aluminium and the dtic on the funding initiative.
“Partnerships such as this reinforce our mandate to support the localisation of automotive components and the beneficiation of minerals critical for new energy vehicles. In doing so, we continue to act as a regenerative force – seeding opportunity and shaping a sustainable, globally competitive automotive industry,” said Rapudi.
Dtic Policy Analyst Mzwakhe Mbatha said the department would continue to support the development of automotive component manufacturing companies through the SA Automotive Masterplan 2035.
