Bosch plans to invest R100m in SA auto-part facility

Posted On Monday, 06 November 2006 02:00 Published by
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Global manufacturer of automotive and industrial technologies and consumer goods, the Bosch group, will invest R100-million in South Africa over the next three years.

Global manufacturer of automotive and industrial technologies and consumer goods, the Bosch group, will invest R100-million in South Africa over the next three years.

Speaking at a press briefing in Johannesburg on Thursday, Bosch group board member Dr Volkmar Denner said that the company’s automotive-component manufacturing facility in Brits, in the North West province, will produce complete antilock braking systems (ABS) for supply to a local auto maker in 2007.

The company is investing in new plant and machinery at its Brits facility to meet its customers’ growing requirements for high-tech automotive products. Denner said that the multimillion-rand investment was in line with the expansion plans of many of its automotive manufacturing customers in South Africa.

Besides spending money on new plant and machinery, Bosch will also build a large new warehouse for the facility’s finished products. The Bosch manufacturing facility in Brits currently produces, besides other automotive products, electronic control units, starters and alternators.

Eighty per cent of the company’s production is sold locally and 20% exported. In the last five years, the company invested R110-million in South Africa. Last year, the company recorded sales of about R1,2-billion in South Africa.

It expects that local sales will grow by more than 10% by 2010. Denner said that the company’s strong outlook for growth in South Africa could be attributed to the expectation for robust growth in the automotive industry, in particular.

Annual vehicle production is anticipated to increase from 500 000 units in 2005, to 800 000 in 2010. Bosch is one of the largest manufacturers of high-tech electronic systems for the South African automotive industry.

These systems are becoming increasingly common in new vehicles. For instance, the installation of ABS in new vehicles has increased from 27% in 2000 to 63% last year. Bosch’s Brits plant employs 850 people, and more job opportunities will be created as the facility increases its manufacturing capacity.

Besides automotive products, Bosch also sells workshop equipment, power tools, security systems and household appliances in South Africa. The company also forecasts robust growth in markets other than the local automotive manufacturing industry.

For instance, it is expected that local sales of power tools will increase by 6% a year until 2010. Bosch, this November celebrates, a presence of 100 years in South Africa.

Publisher: Engineering News
Source: Engineering News

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