Establishment of a Joint Venture Company for Local Production of Automotive Press Parts in South Africa
~Contributing to Improved Local Procurement Ratio and Job Creation in the Region~
- Africa
2024-08-26
Toyota Tsusho Africa ("TTAF"), a group company of Toyota Tsusho Corporation, in collaboration with Ogihara Thailand Company ("OTC"), has established Ogihara South Africa ("OSA") in the Republic of South Africa ("South Africa") which will manufacture automotive press parts for Toyota South Africa Motors ("TSAM"). The joint venture is 49% owned by TTAF and 51% by OTC.
1. Background and Purpose of the Establishment
South Africa, the largest automobile-producing country in Africa, faces the social issue of high unemployment rates. In response, it has set forth policies in the South African Automotive Masterplan (SAAM) to increase the local procurement ratio of automotive production parts from the current 39% to 60% and double the number of employees in the automotive industry to 240,000 by 2035.
In alignment with this government policy, TSAM, Toyota Motor Corporation’s automotive production base in South Africa, is also striving to improve its local procurement ratio. In response, TTAF, which has long supported TSAM's production in South Africa, and OTC, a company that manufactures press parts globally, have decided to establish a joint venture to produce press parts for TSAM.
2. Future Development
The construction of a factory in Durban, South Africa is currently underway, with the production of press parts scheduled to begin in January 2026. Subsequently, the local procurement ratio of press parts will be gradually increased, with the ultimate goal of achieving complete local procurement by OSA.
Localization of press parts imported from OTC will contribute to raising TSAM's local procurement ratio, and OTC will also work to further increase the ratio by expanding the types of parts to be produced locally. Moreover, OSA plans to create around 250 local jobs by 2026, contributing to job creation.
By producing automotive press parts in South Africa, the Toyota Tsusho Group aims to contribute to the improvement of the local procurement ratio, job creation, and economic development.
Company name
|
Ogihara South Africa (Pty) Ltd. |
---|---|
Established
|
January, 2024 |
Location
|
Durban, Republic of South Africa |
Business description
|
Manufacture of press parts |
Capital
|
350 million rand |
Investing companies
|
Ogihara Thailand Company : 51% Toyota Tsusho Africa: 49% |
Reference
Company name
|
Toyota Tsusho Africa (Pty) Ltd. |
---|---|
Established
|
October, 1999 |
Location
|
Durban, Republic of South Africa |
Business description
|
Supply chain management for automotive manufacturing entities |
Capital
|
358 million rand |
Investing companies
|
CFAO Holdings South Africa: 74.9% Kapela Holdings: 25.1% |
【Overview of Ogihara Thailand】
Company name
|
Ogihara Thailand Company Ltd. |
---|---|
Established
|
February, 1987 |
Location
|
Bangkok, Kingdom of Thailand |
Business description
|
Manufacture of press parts and press dies for automobiles |
Capital
|
372 million Thai baht |
Investing companies
|
Ogihara Corporation: 50% ITOCHU Thailand: 25% and other companies |
The information in this release is current as of the date of announcement.
Please note that information may change after the date of announcement. Thank you in advance for your understanding.