KwaZulu-Natal’s automotive components manufacturing industry has received a R1.1 billion boost through a new joint venture between Toyota Motors South Africa, Toyota Tsusho Africa and Ogihara Thailand Corporation.
Ogihara SA was registered in 2023 to manufacture automotive components for the localisation efforts of Toyota SA’s next generation Hilux.
The company’s new 32,000 square metre site at Dube TradePort’s TradeZone 2 will include a manufacturing and assembly plant relocated from Thailand to produce pressed steel components for Toyota SA’s vehicle manufacturing plant in Prospecton.
The venture will phase in the sourcing of additional local press parts that are currently imported. This significant step will not only boost local industry capabilities and economic growth but will also lead to an increase of 25,000 tons a year in locally procured steel.
It is one of the largest localisation projects undertaken by Toyota SA to date and an important benchmark for further large-scale localisation projects under consideration.
Construction of the facility has commenced and the company aims to resume its manufacturing operations in June 2025.
Speaking at the launch event on Thursday, Toyota SA President and CEO Andrew Kirby said: “This joint venture marks a significant step towards our Local Value Addition (LVA) improvement strategy by localising the production of these critical components.
“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.”
The automotive industry is South Africa’s largest manufacturing sector. Currently, KZN’s automotive manufacturing sector is concentrated in the south of Durban, contributes about R21 billion to the local economy per year, and employs some 20,000 people.
Ogihara SA’s new Toyota investment also offers an important lifeline to South Africa’s troubled steel sector, where the future of mining giant ArcelorMittal's steel plant in KwaZulu-Natal still hangs in the balance.
“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,” said Rev Musa Zondi, MEC for Economic Development in KZN.
Going forward, the 45-hectare Dube TradeZone 2 will continue to target further investors in the manufacturing and assembly, logistics, and automotive sectors.
IOL