The Minister of Trade, Industry, and Competition, Mr Ebrahim Patel, welcomes the expansion of the Benteler South Africa plant in Port Elizabeth. This development represents a significant milestone in South Africa’s thriving automotive manufacturing industry, reaffirming the nation’s growth trajectory and its status as a hub for automotive production, notably in the Eastern Cape Province.

The Benteler investment has resulted in the expansion of the plant by over 9 000m2, positioning it as the third hot forming plant in South Africa.

During the construction phase, this expansion generated employment opportunities for 236 individuals and provided business opportunities to 42 different companies. Furthermore, it is anticipated that an additional 50 skilled jobs will be created, increasing Benteler’s workforce from 697 to 743.

Benteler has been working with metals since its foundation in 1876. Customers benefit from unsurpassed materials expertise, for example in the production of chassis components

Addressing the opening function, Minister Patel stated: “This investment is significant as it will achieve an annual import replacement value of an estimated R1 billion.”

The investment is also a testament to the efficacy of the Department of Trade, Industry, and Competition’s (the dtic) Automotive Production and Development Programme (APDP) and the Automotive Investment Scheme (AIS), operating within the framework of the South African Automotive Masterplan (SAAM).

It highlights the pivotal role played by component manufacturing, a fundamental element of the APDP’s objectives, especially in light of the constant evolution in vehicle technologies and manufacturing processes.

Minister Patel concluded: “This underscores the growing recognition among Original Equipment Manufacturers (OEMs) of the advantages of purchasing from localised suppliers. OEMs have seen that through local manufacturing of components they can mitigate offshore supply chain costs, ultimately resulting in the creation of local jobs.”

The company has 73 manufacturing plants around the world, operating in 26 countries and employing over 23 000 people. Their Nelson Mandela Bay plant has increased its employment to over 700 people.