10 July 2013
South African automotive parts supplier Feltex and Luxembourg-based International Automotive Components (IAC) have formed a joint venture in East London in the Eastern Cape.
The venture, called IAC-Feltex, marks the IAC’s entry into the growing South African automotive sector, which is predicted to increase annual passenger car production to 600 000 units by 2018.
IAC will provide design, engineering and manufacturing expertise for vehicle interior components and Feltex will provide product and process expertise.
“The joint venture will initially support current production requirements for Ford, Mercedes-Benz, Toyota and Volkswagen South Africa operations and is positioned to support additional business opportunities,” IAC said in a statement on Tuesday.
“Also, this facility will support global vehicle programmes, such as the Mercedes C- Class, for which IAC will supply the interior garnish trim, flooring system, trunk trim and exterior wheel arch liners.”
The deal forms part of the IAC’s expansion plans into new and emerging markets and follows joint ventures in Malaysia and Thailand, the opening of a greenfield manufacturing facility in Romania, a sales and engineering office in South Korea and its 11th plant in China.
The IAC Group operates 79 manufacturing facilities in 18 countries and a total of 90 locations in 20 countries around the world.
Feltex has manufacturing plants in Durban, Rosslyn and Ga-Rankuwa in Pretoria, Port Elizabeth and East London and supplies products directly and indirectly to South African original equipment manufacturers (OEMS).
“We believe that the joint venture’s complementary products and design, engineering and manufacturing expertise will provide value to our multinational customers which are producing vehicles in South Africa,” said IAC’s president and chief executive officer, James Kamsickas.