Joint venture will stimulate automotive industry

According to Pieter Bosch, executive director at TrelleborgVibracoustic-Ikhwezi, the deal is evidence of the growth of the South African automotive sector as well as the role that the country is playing in the global automotive arena. "More and more foreign and multinational companies are demonstrating confidence in our manufacturing abilities by forming local partnerships in South Africa."

The announcement of the deal is also positive for skills development as a portion of the investment goes towards a partnership with the Master Artisan Academy of South Africa (MAASA), a specialised technical training institute based in East London that focusses on the up-skilling of artisans.

Training in Poland

TrelleborgVibracoustic-Ikhwezi recruited 15 individuals with initial technical training taking place at MAASA, with an intensive seven week theoretical and practical training programme at TrelleborgVibracoustic's factory in Poland. The recruits depart in October and return early December. Following this period, the recruits will commence permanent employment at TrelleborgVibracoustic-Ikhwezi's new 4 000m² green field facility.

"Sustainable job creation in South Africa can only occur if we develop our manufacturing sector, yet, there is a critical shortage of high level technical skills in the country. We aim to fulfil that gap by transferring knowledge and skills to previously unemployable people in order to boost the country's human capital. This is a practical example whereby the returning core group will be able to train fellow colleagues and continue the skills transfer," says Willie Gresse, director of operations at MAASA.

"The second biggest industry in South Africa after mining is the automotive manufacturing sector and its supplier network. The impact therefore of this investment, including its large skills development focus, positively affects the automotive value chain, from the second tier supplier, right through to the original equipment manufacturer," says Bosch.

A model to follow

Kallie Mabentsela, chairman of Ikhwezi Investment Holdings, says that the South African 'brain drain' has affected the level of quality skills in the country, and that the new company's large focus on skills development combines international expertise and local know-how to invest in the local economy and its people. "This is a model more companies should follow to contribute to sustainable job creation. We are proud to be associated with the potential that the recruits have to forge career paths in the automotive sector," says Mabentsela.

Ikhwezi will provide support services such as human capital, financial and information technology management to the newly formed company, while TrelleborgVibracoustic will have full product design, manufacturing and quality responsibility as part of its agreement. The new company will initially hire all 15 MAASA-trained recruits, but will ultimately employ 40 individuals when the company begins to manufacture in 2013.