A R1.1 venture between Ogihara South Africa (OSA) and Toyota South Africa Motors (TSAM) will create jobs, fortify the automotive sector and grow the economy.
The operation was launched on Thursday at Dube Tradeport in Durban.
The venture, which also includes Toyota Tsusho Africa (TTAF), has already seen the start of construction on a 32 000m2 site at Dube Trade Port’s TradeZone 2.
It will operate a manufacturing and assembly plant, relocated from Thailand, for the production of press parts for Hilux and Fortuner models that will be deployed at the Toyota plant in Prospecton, Durban. TSAM said that the investment would also create 250 direct jobs and boost the manufacturing and automotive sector in KZN. Production of the press parts is expected to commence in 2025.
Andrew Kirby, CEO and president of TSAM, said that the project, initiated over two years ago, represented a significant milestone for Toyota.
“This collaboration has focused on localising the production of press parts for our Hilux and Fortuner models at the Toyota plant in Prospecton, Durban, and is set to commence production in July 2025.
“By investing in this facility, we are localising approximately 25 000 tons of metal pressing materials, which were previously imported.”
Kirby added that the investment of over R1.1bn is shared between OSA, which has invested R630 million and TSAM, which has invested R545m.
“It will result in an increase in the local content contribution for our Hilux and Fortuner models, and by way of example the local content for Hilux will increase from 52% to 54%, therefore aligning ourselves closer to the South African Automotive Master Plan 2035 localisation targets with one of the pillars of the plan being to reach a localisation level of 60% by 2035.”
Parks Tau, Minister of Trade, Industry and Competition, said this was an important milestone in the automotive sector.
“We are convinced it will bring substantial foreign direct investment to South Africa, create numerous employment opportunities, and further deepen the localisation of our economy in alignment with the South African Automotive Master Plan objectives.”
Tau said through this investment, the company has also committed to increasing employment.
“I am told that this investment will create 250 new jobs and through the value chain a further 1 040 indirect jobs. It is also pleasing to learn that the investment will also target SMME development with a strong focus on women and youth.
“The community is very important as the investment unfolds and it is encouraging to hear that the investment will give preference to the companies in the surrounding areas.”
KZN MEC for Economic Development, Tourism and Environmental Affairs, Reverend Musa Zondi, said the investment was testament to TSAM continuing and increasing investments into South Africa and the province.
“The manufacturing sector is one of the key priority industries of the economy and continues to play a pivotal role in the creation of employment opportunities.
“Currently, the automotive manufacturing sector is concentrated in the south of Durban. It contributes about R21 billion to the local economy per annum and employs some 20 000 people. Toyota South Africa is central to the heartbeat of the KwaZulu-Natal economy. It touches the lives of the people of this province and our country in more ways than one.”
Hiroshi Morita, CEO of Ogihara, said that he was proud to have had strong partners in this venture such as TTAF and TSAM.
“We also want to thank Dube Tradeport for the support given in this investment. We have all come together to build something great.
“We have laid a foundation for a brighter future for this community and TSAM to deliver high-quality vehicles and provide many opportunities for people.”
Dube TradePort CEO Hamish Erskine said that the new Ogihara SA facility is a real localisation project.
“Parts that are being manufactured in Thailand will now be manufactured here at Dube Tradeport and it is a long-term thing. We see this as a rebuilding of the automotive industry in KZN.
“In terms of the future we want to support TSAM’s journey to having more suppliers and more component manufacturers in KZN.”
The Mercury