General Motors SA (GMSA) has welcomed the news that state-owned oil and gas producer Petro-SA will convert a percentage of its Mogas molecules to liquefied petroleum gas (LPG) in order to alleviate the country's acute shortage.
"This development will bring some relief to industries that have been operating in difficult circumstances over the past two weeks," Denise van Huyssteen, communications manager of General Motors for sub-Saharan Africa, said on Friday (8 July 2011).
"In particular this has affected the ceramic substrate industry, which is a key part of the catalytic convertor industry, and would thus threaten a major disruption to production in the automotive sector.
"Disruptions to production in the automotive sector would have serious supply chain ramifications throughout SA, impacting not only on local manufacturing but the entire global supply chain for automotive manufacturers."
She added that the decision by PetroSA would go a long way in ensuring that the current situation was improved, but concerns around availability of liquefied petroleum gas remained in the long term.
"Therefore PetroSA's continued attention to this matter, as well as that of government as the sole shareholder in PetroSA, is very much appreciated.
"As General Motors SA, along with key supply chain partners in the ceramic substrate industry, we want to continue working with government as well as PetroSA and other industry stakeholders to find a long-term solution to the matter. "
