Localisation in South Africa’s automotive sector is set to increase as Johnson Con-trols’ East London plant expands from a just-in-time vehicle interior component operation to a local manufacturing facility through a R380-million project.

The investment follows on Johnson Controls’ securing of a contract to supply Daimler subsidiary Mercedes-Benz South Africa (MBSA) with interior components for the new C-Class W205 series.

Johnson Controls, which currently has a smaller facility assembling cockpits for MBSA’s W204 series, will install ten new technologies and processes into the 13 000 m2 facility over the next year, ramping up to full production by April 2014.

The facility, based at the East London Industrial Development Zone’s (ELIDZ’s) Automotive Supplier Park, would supply MBSA with interior components, including headliners, instrument panels, overhead systems, cockpits and door panels, Johnson Controls Automotive Experience VP and GM of electronics Jeff DeBest said during a recent media visit.

However, the raw materials for the components would be imported, owing to a limited market in South Africa.

The parts and components for the new C-Class W205 series would be produced for Daimler – under a global programme – in four countries, namely South Africa, Germany, the US and China.

The investment comprises over R230-million for the capital equipment, close to R80-million for recruitment and training, and about R65-million for the global programme and technology support.

DeBest commented that South Africa would be the second country after Germany to host such technology to produce the components.

MBSA VP for manufacturing Arno van der Merwe commented that the new series vehicle, on which production would start next year, would result in an increase of more than 50% of the car manufacturer’s capacity, adding about 800 new jobs.

Johnson Controls VP and GM Marco vom Wege believes that, while the development of localisation in South Africa has been difficult, owing to a lack of technology and skills, its new facility’s technology will result in the localisation of more components with other customers in the future.

Trade and Industry Minister Dr Rob Davies praised the initiative, saying the investment would move the country onto a higher plane of manufacturing and build technology, while aiding South Africa’s efforts to localise and drive the Industrial Policy Action Plan.

He added that component manufacturing offered the greatest opportunities for job creation and that the establishment of the new facility flagged the ELIDZ as a stable and sustainable programme.

The ELIDZ, situated neatly between the airport and the harbour, had grown from receiving R600-million in private invest- ment in 2009 to boasting investment of R4-billion from 32 investors – 87% of which were foreign direct investors – in 2012.

Currently, 23 of those investors are operational, with another eight undertaking construction.

The industrial zone’s most recent investor, Voesalpine Stamptec, is expected to open its first Southern Africa-based automotive unit in February or March next year.

The R30-million facility will be responsible for the assembly and supply, over the next seven years, of the cross beam below the seat of MBSA’s C-Class W205 series.