Funding agreement for tooling cluster initiative signed

30 Jul 2013

At the recent Afrimold Conference, Henk Snyman, secretary of the Toolmaking Association of South Africa (TASA) Gauteng branch, announced the signing of a funding agreement with government agency, Gauteng Enterprise Propeller (GEP), to establish a viable tooling cluster that will boost localisation in the tool-making sector in support of the packaging and automotive manufacturing industries in South Africa.

TASA Gauteng has been awarded R10.6 million from GEP as part of a three-year contract to launch a tooling cluster initiative. This initiative underlines TASA Gauteng's commitment towards the revitalisation and expansion of the tool, die and mould-making (TDM) as well as the precision machining sectors, which are crucial to the future of the manufacturing industry in South Africa, especially with regards to the automotive manufacturing sector.

The fundamental concept behind the initiative is the creation of a formal and informal association of multi-sectorial companies who share common goals and are prepared to join like-minded companies for the common good of the entire group and consequently the economy as a whole.

The idea of the cluster initiative is to improve the capacity of the TDM industry in terms of cost, time to market, profitability and the size of tooling - thereby allowing manufacturers to take advantage of economies of scale, higher local content, local tool maintenance capabilities for large tools as well as the accessibility and flexibility that comes from dealing with locally based toolmakers.

Share resources

Participating tool-making companies will be able to share resources that will enable them to improve their capabilities and capitalise on the synergistic effects available through the clustering process. This will enable them to focus on their core competencies, resulting in greater profitability, efficiency and reduced strain on their business. The model will also provide tool makers with a viable exit strategy from their business when needed.

In relation to the manufacturing sector and the South African economy as a whole, the clustering process is also expected to reduce foreign purchases, thereby increasing global competitiveness. Furthermore, the cluster initiative will foster job growth for tool makers emerging from the NTIP/TUT tooling training programme.

Implementation of the cluster initiative is set to commence during the course of this year. Tool makers and tool-making companies in Gauteng interested in participating in the first phase of the clustering process are encouraged to get in touch with Henk Snyman on +27 (0)12 643 1285 or email on az.oc.bewasat@skneh to arrange the necessary documentation.