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Isuzu officially launches business operations in SA

Isuzu Motors has announced the official launch of its business operations in South Africa.
Isuzu officially launches business operations in SA

The Nelson Mandela Bay Business Chamber (NMBBC) congratulated the company on the opening and unveiling of its Struandale plant in Port Elizabeth, Eastern Cape. “This launch is in line with Nelson Mandela Bay’s stated intent of positioning itself as Africa’s automotive manufacturing hub. The Business Chamber acknowledges that the investment confirms Isuzu’s confidence in the city as an investment location,” said Nomkhita Mona, CEO of the Nelson Mandela Bay Business Chamber.

The president and representative director of Isuzu Motors of Japan Masanori Katayama said: "This is the first commercial and light commercial vehicle manufacturing operation outside of Japan in which we have acquired a 100% ownership. We are represented in 30 countries outside of Japan and successfully operate 47 manufacturing plants in these countries with joint venture partners.

"Our decision with regards to South Africa demonstrates the confidence we have in this market and also is indicative of our longer-term view that South Africa will serve as an important base for our future growth on the African continent," said Katayama.

Initial focus

Also speaking at the launch event, Isuzu Motors South Africa CEO and MD Michael Sacke said that the company's initial focus would be to fully consolidate its operations while laying the foundation for the company's future success. "Our short-term focus is on implementing our transitional plans, ensuring the sustainability of our operations, further strengthening our product portfolio and relocating the truck operations from Kempston Road to the Struandale plant," he said.

He said that in the medium term the company would need to plan for the successful launch of future products, implement measures to increase its domestic market share and increase its exports into sub-Saharan Africa markets.

“The policy environment will focus on ensuring that South Africa accounts for 1% of global vehicle production volumes by 2035. Development and empowerment of black-owned business for inclusive growth as well as increasing local content are the main agenda points for future planning. We remain encouraged by some of the packages and incentives created by government for the automotive industry that will create a cascading effect of wealth creation for downstream businesses and communities. As the Business Chamber, we encourage our big businesses to engage in linkages with the smaller businesses in the region”.

Commenting on increased production levels, transformation and localisation, Mona said she wanted “the Bay’s automotive economy to lead, innovate and disrupt in these critical areas. One of the major issues for existing investors is an environment characterised by ease of doing business. The Business Chamber will continue to lobby to ensure that the necessary environment and provisions are made for our auto manufacturers”.

“The Isuzu investment is a much-needed response to mitigate the General Motors South Africa disinvestment which would have been a big blow for the city’s unemployment rate. We are encouraged by the fact that Isuzu would absorb most of these jobs,” she said.

The Minister of Trade and Industry, Dr Rob Davies, said: "With its ability to link throughout the economy, the government has identified the automotive industry as a key growth sector. The auto industry is important to the future of manufacturing in this country and whatever emerges in the future will be based on a significant level of support for it going forward. The sector contributes 7.5% of South Africa's Gross Domestic Product and employs about 113,000 people directly. It is key to ensuring greater economic growth."

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