Dr Johan van Zyl
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Transcript Dr Johan van Zyl
South Africa’s Component
Manufacturing Landscape:
Challenging the Past to improve the
future.
Dr Johan van Zyl
President : NAAMSA
CEO Africa Region: Toyota SA Motors
2014-10-14
What we Know …….
World Leader in fiscal policies and fiscal
compliance
Fundamental requirements for economic
growth
Labour Cost is Worst of BRICS
Source: www.tradingeconomics.com
Find our Competitive Advantage
Strength lies within….
SWOT Analysis
Weakness
Strength
Build to print industry
Assembler culture
Limited skills and resources
Low local content (value added)
International not competitive
Threat
Availability of basic
Raw Materials
Availablity of basic raw materials
International certification of
management systems
Strong automotive assembly
experience
Opportunities
Mineral Resources is Key
Political situation
High crime level
Free capacities in Asia and
Europe
Monopoly situation of suppliers
Price increases
Wide supplier base to the 7 OEM‘s
Export of single components
Local OEM‘s to use common
suppliers
Localisation of current CKD parts
Currency development
APDP / BBBEE
IPAP Initiative to support supplier
Why……..
Our Resources
Lead
12th of 38 countries
89
67
45
3
12
19
1718
1516
14
1213
1011
22
2021
27
2526
2324
2829
34
3233
3031
3738
3536
Iron
Export
Destinations:
6th Largest of 50
Export
Destinations:
LCR = 98% China, Europe
China, Europe,
Japan, Asia-Pacific,
Middle East, South
Korea
LCR = 35%
Example – LA
Batteries CIM<1
Beneficiation = Biggest Opportunity
Synthetic Fuel
Coal
Copper
45
43
6th of 33 countries
36
34 35
20th of 45 countries
1
2
4
5
7
9
12
8
14 15
18
20
22 23
25
27
Aluminium
LCR = 9th4%
of 43 countries Resin
33 34
27 28
Compounding
23
Export
Destinations:
LCR = 58%China, Europe
43
41 42
16 15
13 14
5
3 4
1 2
9
7 8
19
21 22
Export
Destinations:
LCR = 41%China
Scenario……..
Beneficiation: 103,000t / year
R 2.5 billion / year
Main Commodities
If reduced
by 10%
Ave
kg/Vehicle
Local (40%)
Import (60%)
Total
Typical Vehicle
Average
Steel
Aluminium Copper
Resin
Other
Materials
290
96
16
3
163
540 (65%)
139 (59%)
12 (42%)
65 (96%)
108 (40%)
830
235
28
68
271
Typical Total Vehicle Average: 1432 kg
Items to Fix……..
Competitive
Localisation
Automotive Growth
Technology Support
• Collaboration
• Investment
• Skills
Commodity Pricing
• Why Import Parity?
• Pay US$ for ZAR Cost base?
• Beneficiation
7
Thank You