KEY DEVELOPMENTS
AND VISION FOR THE
SECTOR IN THE KZN
AUTO HUB
ANDREW VELLEMAN
Chairman
Durban Automotive Cluster
INDUSTRY OVERVIEW
•
One Third of South Africa’s Automotive Manufacturing Activity Takes place in KwaZulu
Natal:
•
65 – 80 KZN Automotive Suppliers Span a Wide
Range of Manufacturing Activities.
•
The APDP Administration System shows that 32%
of Value Addition in the SA OEM Supply Chains
Takes Place in KZN.
•
The Supply Base Provides Important Inputs Into
the OEM Production Hubs in KZN, the Eastern
Cape and Gauteng.
•
KZN is the Home of Toyota SA Motors, SA’s
Largest OEM.
•
Medium and Heavy Commercial Production is
Undertaken by Toyota SA Motors, MAN Truck &
Bus and Bell Equipment.
•
KZN Automotive Suppliers are Supporting All of
the OEM’s within South Africa.
INDUSTRY OVERVIEW
•
Port (Ocean Freight) - The Proximity to the
Durban Port is an Advantage for the
Regional Sector in Terms of Material Inputs
and Access to Export Markets. A New Port
is Also Planned to Increase Competitive
Advantage.
•
Rail and Road - Sound Road and Rail
Infrastructure Provides Strong Logistical
Linkages to Gauteng and the Eastern Cape.
•
Airport (Air Cargo) - The Dube Trade Port
Has Been Established and Is Intended to be
Approved as a Special Economic Zone
(SEZ).
•
Supplier Park - KZN is in the Process of
Establishing a Supplier Park Increasing the
Competitive Advantage for the Automotive
Industry.
(Continued)
DURBAN AUTOMOTIVE CLUSTER OVERVIEW
•
The DAC is a Public-Private Partnership (PPP) Between the Automotive Industry in
KZN and the eThekwini Municipality that was Initiated in 2002.
Vision
• To
Promote
the
Growth
and
Competitiveness of the KZN Automotive
Manufacturing Sector.
Mission
• To
Establish
Mutually
Competitive
Advantages and to Help the Automotive
Manufacturing Sector to Overcome
Generic Challenges.
Objective
• Industry Manufacturing Value Added
Growth of 100% in Real Terms Between
2012 and 2020.
STRATEGIC FRAMEWORK
Growth in Manufacturing Value
Addition (MVA)
Cost Competitiveness
Access to
Increased
Scale of
Production
Access to
Product &
Process
Technology
Competitive
Operating
Efficiencies
Enabling Infrastructure
Competitively priced
Competitively
Priced input
Input materials
Materials
Competitive
Skills
INSTITUITIONAL FRAMEWORK
Executive Committee
External Affairs
Market &
Technology Access
Manufacturing
Excellence
Skills Development
Infrastructure &
Materials
Alignment and Collaboration Enabled Via:
•
•
Local Government – Representation on Executive Committee.
•
NAACAM – Executive Director Attendance at Executive Committee Meetings and Alignment of
Regional Meetings.
•
DTI, NAAMSA, NUMSA – Via Representation on ASCCI, Which is Constituted as a Partnership
Between Suppliers and All Stakeholders.
xx
Materials &
Infrastructure
Skills
Development
Manufacturing
Excellence
Market & Tech.
Access
HIGHLIGHTS
1.
APDP Readiness Training and Incentive Access Support.
2.
Supported the Establishment of the Automotive Supply Chain Competitiveness
Initiative (ASCCI).
3.
Successfully Created Buyer-Supplier Localisation Interaction Platform via National
Localisation Indaba.
1.
Benchmarking and Intervention Planning Support Suppliers.
2.
Lean Coaching Activities and Best Practice Study Tours.
3.
Black Owned SME Business Excellence Support
1.
Management Development Programme (MDP) Established in Partnership With
University of Stellenbosch – 50 Graduates over 4 years.
2.
Extensive Graduate Engineer and Team Leader Training Activities.
3.
Strategy and Training Activities to Support Improved B-BBEE Performance.
1.
Materials Utilisation and Cost Saving Related Studies.
2.
Energy Efficiency and Carbon Foot-Printing Assessments and Support.
3.
Preferential Sea Freight Rate for Member Firms.
Materials &
Infrastructure
Skills
Development
Manufacturing
Excellence
Market &
Tech. Access
VISION
1. Improved Access to Sector and Firm-Level Growth Opportunities
2. Enable Global Technology Affiliations and Local Innovation
1. Improved Knowledge of Manufacturing Best Practices
2. Enable Effective Adoption of Manufacturing Best Practices
3. Black Owned SME Business Excellence Support
1. Effective Skills Development Interventions
2. Application of Skills in the Workplace
3. Cross-Cutting Prioritisation of People-Related Aspects of B-BBEE
1. Improved Cost Competitiveness in Relation to Major Material Inputs
2. Support on Key Infrastructure and Logistics Projects
THE WAY FORWARD…
EHANCED COST
COMPETITIVENESS
LOCALISATION
INDUSTRY
GROWTH
THANK YOU
ANDREW VELLEMAN
Chairman
Durban Automotive Cluster