The broader automotive sector is critical to the economy of the country and has been contributing between 6 and 7% to the country's Growth Domestic Product. This was said by the Minister of Trade and Industry Dr Rob Davies during the launch of the Combi metre production facility by Hesto Harnesses in KwaDukuza, Kwa-Zulu Natal yesterday.

According to him, the launch of this new facility will not only contribute to job creation and the upliftment of community, it will also take the production of local content to another level. He adds that the project being embarked on by Hesto is valuable as it re-affirms South Africa’s position as a sustainable base for production.

Hesto Harnesses will be producing the Combi metre for Toyota Hilux, to be introduced in 2016. Currently this cluster; speedometer and instruments are imported from Japan.

Davies says that Hesto Harnesses which is a beneficiary of the Automotive Production Development Program support and especially the Automotive Incentive Scheme has shown commitment to ongoing manufacturing competitiveness improvement and has thus far created over 2200 sustainable jobs.

“The manufacturing of the Combi Metre in the country is an important investment in the manufacturing sector,” adds Davies.

Davies says projected investments by original equipment manufacturers are expected at a record of R7.5bn for 2015. He says major investors this year have included Volkswagen, Toyota and Mercedes-Benz South Africa.

He emphasised that there is a positive knock on effect of supplier investment, as evidenced by the Hesto project being celebrated.

Hesto supplies automotive electrical distribution systems, commonly known as wiring harnesses and combination meters to OEMs in the South Africa. The company’s main customers are Toyota and GMSA at present.

According to the Managing director of Hesto Harnesses Mr Theo Loock, the launch is a reflection of the positive effects of Industrial Policy Action Plan and International agreements that the government enter into with other countries.

“Through this project, there will be a lot of technology and skills transfer from the Japanese. This new facility will manufacture the dashboard instrument cluster for the new Toyota Hilux, to be introduced in 2016.

Currently this cluster (speedometer and instruments) is imported. We have now localised a portion of this with manufacture taking place at our Stanger factory,” adds Loock.

CAPTION: Minister Davies with John Chondla from Hesto Harnesses during the unveiling of the combi metre plant yesterday in KwaDukuza.

Issued by The Department of Trade and Industry