MOTORING NEWS - Sumitomo Rubber South Africa (SRSA) is investing R2 billion to upgrade and expand its Dunlop tyre manufacturing plant at Ladysmith, KwaZulu-Natal province.
It launched the commencement of the second phase of the investment recently.
The investment is a catalyst for both socio-economic and technological advancement in South Africa. The direct job creation impact and employment spinoffs as a result of the completion of Phase One, are already being realised. "Employment levels are already increasing due to Phase One.
The first of nearly 120 new employees needed over the next few years, have already been recruited. Phase Two will attract a further 300 new employees.
This will increase the employment of the plant to more than 1,200 employees on completion of the second investment phase," says company CEO Riaz Haffejee.
"As one of the largest employers in Ladysmith [the investment] will deepen our impact on stimulating job creation through increased production and industrial development competitiveness."
"As one of the largest employers in Ladysmith [the investment] will deepen our impact on stimulating job creation through increased production and industrial development competitiveness."
New technology for new demand
The initial phase of R1.1 billion, which commenced in 2014, focused on the upgrading and modernisation of the plant's capacity, introducing new technology and equipment aimed at increasing manufacturing output of high quality passenger and Sport Utility Vehicle (SUV) tyres.
The initial phase of R1.1 billion, which commenced in 2014, focused on the upgrading and modernisation of the plant's capacity, introducing new technology and equipment aimed at increasing manufacturing output of high quality passenger and Sport Utility Vehicle (SUV) tyres.
Its parent company, Sumitomo Rubber Industries (SRI) in Japan, allocated the investment for the development of Phase One. This coincided with the introduction of new SUV tyre models that were not yet manufactured at the Ladysmith plant.
"This is our response to the market trend and demand for these models in both South Africa and other African markets," Haffejee said.
Phase Two, at an estimated value of R910 million, focuses on the introduction and manufacture of truck and bus tyres for commercial use.
Phase Two, at an estimated value of R910 million, focuses on the introduction and manufacture of truck and bus tyres for commercial use.
This Dunlop branded product line is currently being imported into South Africa from SRI's plants in Japan and China, due to the unavailability of suitable manufacturing capacity locally.
This new investment will establish a suitable local manufacturing base and terminate the current import arrangement.
