The Gauteng government is investing an additional R70-million in the Automotive Supplier Park (ASP) in order to secure its future development.

This adds to the R200-million the provincial government has already spent on the park, which officially opened its doors earlier this year, says Automotive Industry Development Centre (AIDC) MD Paulo Fernandes. The ASP, located in Rosslyn, outside Pretoria, houses suppliers to the automotive industry next door to the province’s largest car manufacturers, such as BMW and Nissan. The ASP is an AIDC project, which is, in turn, a project of Blue IQ – Gauteng’s drive to invest in economic infrastructure development.

Fernandes says as phases one and two of the park are nearly completed, the additional funding means, "in principle, that phases three and four can continue".

The additional government investment comes as the ASP is locked in discussions to sell a substantial percentage of the park to a private investor. Gauteng Finance and Economic Affairs MEC Paul Mashatile says a proposal has been received with regard to a private sector partner, and that this offer is under review, together with other alternatives for the further development of the ASP. He expects an announcement on this matter to be made once a review has been completed. Mashatile adds that Blue IQ, and thus the provincial government, will remain as a shareholder of the project, even if a private partner signs on, which should go some way to easing any tensions current and potential tenants may have as to the future of the park.

"ASP is well on its way to becoming sustainable and we would like to keep the momentum." The park added two new tenants to its fold last month.

Fleetguard is a subsidiary of the American Diesel Engine Powerhouse Cummins, which is developing a production unit focused on exports.

This will be Fleetguard’s first production facility in Africa, and will manufacture truck and bus exhaust systems. The company will occupy its premises in the ASP later this year, offering various business opportunities for part supplies by local companies.

The second new company setting up shop in the supplier park is Rieter Feltex, which is a joint venture between the South African Feltex group and Swiss technology supplier Rieter Automotive. This venture will move into a highly-specialised production facility for long glass-fibre-reinforced thermoplastic composite technology mid-2005, and is set to supply various car manufacturers in South Africa.

The venture’s technology allows for an improved underfloor system for cars, and the production facility will be the first of its kind in Africa.

ASP has also signed three other pre-lease agreements with clients that cannot be named at present.

Current key tenants include Lear Corporation, Faurecia, Grupo Antolin and Tensile Rubber Mouldings.

In addition, the park has attracted 12 service providers to the automotive industry taking up office in the central service centre, which has led to the development of 1 200 m2 of additional office space earlier this year.

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