A R1.1-billion automotive components manufacturing facility was recently inaugurated at Dube TradePort’s TradeZone 2, marking a significant foreign direct investment in KwaZulu-Natal and heralding a new era for the province’s growing automotive sector.
This facility is the result of a joint venture between Toyota Tsusho Africa (Pty) Ltd and Ogihara Thailand Corporation Ltd. Speaking at the launch, Rev Musa Zondi, MEC for Economic Development, Tourism, and Environmental Affairs, highlighted the sustained momentum in KwaZulu-Natal’s economy and the strategic role that Special Economic Zones like Dube TradePort play in driving growth within the vital automotive sector.
Ogihara SA’s new 32,000m² facility at TradeZone 2 will house a relocated manufacturing and assembly plant from Thailand, producing pressed steel components specifically for Toyota South Africa Manufacturing. With construction underway, the plant aims to begin operations by June 2025.
This investment is the largest secured by Dube TradePort since its establishment alongside Durban’s King Shaka International Airport and follows Mahindra South Africa’s vehicle assembly facility launch in 2018. Rev Zondi expressed optimism about future investments in the region, noting that the Dube TradePort Corporation is set to develop and operate the proposed Durban Automotive Supplier Park in collaboration with the eThekwini Municipality.
Hamish Erskine, CEO of Dube TradePort, expressed satisfaction with Ogihara SA’s decision to locate its facility at TradeZone 2. He noted that the location meets the private sector’s needs for a stable, secure, and sustainable environment, with green energy solutions becoming increasingly critical for international supply chains.
Ogihara SA, established in 2023, will manufacture automotive components for Toyota South Africa Manufacturing’s next-generation Hilux IMV build programme. This joint venture is a significant step towards Toyota Tsusho Africa’s local value addition improvement strategy and aligns with national targets for localisation.
The automotive industry is South Africa’s largest manufacturing sector, with KwaZulu-Natal’s automotive manufacturing sector contributing approximately R21 billion to the local economy annually and employing around 20,000 people. Nationally, the automotive industry contributes 5.3% to GDP, with vehicle and automotive component exports reaching a record value of R270.8 billion in 2023.
Rev Zondi emphasised the broader economic impact of this investment, which will initially create 230 jobs, scaling up to 300 within five years. Ogihara SA’s commitment to source 90% of its steel sheets locally will support South Africa’s steel sector, critical for the country’s industrialisation objectives. Ogihara SA is one of seven private sector investors secured for Dube TradeZone 2. Dube TradePort Corporation has attracted R4.6 billion in private sector investment since its inception, creating more than 5,000 permanent and 51,000 indirect jobs.
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