Toyota Tsusho Africa (Pty) Ltd and Ogihara Thailand Corporation Ltd officially launched a R1.1-billion automotive components manufacturing facility at the Dube TradePort (DTP) Special Economic Zone on Thursday.
Speaking at the launch of the joint venture manufacturing operation between Toyota Tsusho Africa (Pty) Ltd and Ogihara Thailand Corporation Ltd, MEC for Economic Development Tourism and Environmental Affairs, Musa Zondi, said the investment was indicative of the strategic role SEZs play in the development of the sector.
Ogihara SA’s 32 000sqm site at DTP’S TradeZone 2 will include a manufacturing and assembly plant relocated from Thailand that will produce pressed steel components for supply to Toyota South Africa Manufacturing.
Construction of the facility has commenced and the company aims to resume its manufacturing operations in June 2025.
Ogihara SA is the single largest investment secured by DTP since its inception alongside Durban’s King Shaka International Airport. This is the second automotive sector investor to set up in DTP after Mahindra South Africa commissioned its state-of-the-art vehicle assembly facility in 2018.
Zondi said the DTP would be both the developer and operator of the proposed Durban Automotive Supplier Park, in collaboration with the eThekwini Municipality. Now in an advanced planning stage, it will be located to the south of Durban and aims to attract component manufacturing and car assembly firms.
“We are exceptionally pleased that after an extensive site selection process, Ogihara SA decided to locate its state-of the-art manufacturing facility at Dube TradePort’s TradeZone 2,” said DTP CEO Hamish Erskine.
“We believe that is because we can meet the private sector’s needs of a stable environment that is secure, well operated, and has sustainable and green energy, as internationally green supply chains and green production are becoming very important for the final product and market.”
Ogihara SA, which was registered in 2023 to manufacture automotive components for on-line fitment to support the localisation efforts of Toyota South Africa Manufacturing’s next-generation Hilux IMV build programme, marks a significant step towards Toyota Tsusho Africa’s local value addition improvement strategy as well as achieving national targets.
Toyota South Africa Motors CEO and President, Andrew Kirby, said the joint venture marked a significant step towards the company’s Local Value Addition improvement strategy.
“The inclusion of Ogihara SA in our local manufacturing ecosystem will not only create new job opportunities but also enhance our capabilities in producing high-quality body parts for the automotive industry. This collaboration exemplifies our commitment to localisation and underscores the possibilities for growth and development in the KZN province,” Kirby said.
According to the Department of Trade, Industry and Competition, the manufacturing segment of the automotive industry currently employs around 115 000 people directly and, including downstream activities, accounts for 320 000 jobs overall.
According to the Automotive Business Council (formerly Naamsa), the automotive industry contributes 5,3% to national GDP. In 2023, record-high vehicle exports ensured that the automotive industry outperformed the rest of the manufacturing sector. The export value of vehicles and automotive components increased by R43,5 billion, or 19,1%, from R227,3 billion in 2022 to a record R270,8 billion in 2023, accounting for 14,7% of total South African exports.
“As outlined in the South African Automotive Masterplan, a key objective of the country’s automotive industry is to increase domestic vehicle production to 1.4 million units by 2035, representing approximately 1% of global output. Achieving this goal requires progress across several key industry goals, including increasing local content, employment, industry competitiveness, and driving transformation in the local industry,” said Zondi.
He said the project would create 230 jobs in the short-term, which would scale up to 300 within five years.
“Through its commitment to source 90% of steel sheets locally, Ogihara SA will strengthen South Africa's steel manufacturing sector, which is critical for the country’s industrialisation objectives.
“The industry is known to accelerate economic growth through its contribution to large infrastructure and manufacturing projects. Because 54% of a vehicle's manufacturing comprises steel, this investment is an important contributor to the growth and sustainability of this sector too.”
