Ed Richardson
Volkswagen South Africa has secured
R1,7 billion in catalytic converter contracts over the next five years for export to Europe and China.
This brings the value of catalytic converter contracts secured by the company in recent weeks to almost R3,9 billion following the earlier announcement of R2,16 billion worth of catalytic converter contracts for the supply of catalytic converters for the new VW Polo in Europe over the next five years.
Contracts for engine
components to be announced
The two biggest contracts in the latest order are for the supply of the units to Europe for the worldwide requirement for a new Audi 1.6L (R373-million) and Audi 1.8T (R1-billion), as well as the supply to China for the Passat B5 (R300m).
Volkswagen managing director Hans-Christian Maergner said the new contract business has been placed with Port Elizabeth-based Eberspaecher - formerly known as Autocat - for the manufacture of catalytic converters for two Audi models and a Passat model.
Eberspaecher will be investing R5-million in new equipment.
"Our export of 30 000 Golfs to Europe has allowed us to rejoin the global vehicle and component supply network and benefited South Africa in terms of foreign exchange earnings and the transfer of skills and technology.
"These three catalytic converter contracts are significant in that they form part of an overall strategy which will see the announcement of additional contracts for engine components, alloy wheels, parts and accessory replacement parts in the near future," he said.
