The new facility positions VSL as a core supplier in Isuzu’s localisation strategy.
A R740 million strategic investment in a new, state-of-the-art manufacturing facility by VSL Manufacturing in Gqeberha is set to play a key role in assisting Isuzu Motors South Africa (IMSAf) to achieve its local contents targets.
The new facility, in leased premises in Struandale adjacent to IMSAf’s manufacturing plant, was officially opened on Thursday.
IMSAf executive vice president for procurement and logistics Komane Pitso said the investment by VSL Manufacturing talks to Isuzu’s overall strategy of localisation, which is in line with the SA Automotive Masterplan 2035.
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Localisation strategy
Pitso said IMSAf aspires to align with the industry localisation target outlined in the masterplan, which is for domestically-based original equipment manufacturers (OEMs) to achieve 60% local content in vehicles produced locally by 2035.
He added that VSL Manufacturing’s investment therefore plays a key role in Isuzu’s overall localisation strategy in helping the company to achieve that target, with the investment focused on Isuzu’s D-Max bakkie.
“We are on track to meet that target and we do have strategic plans in place, and one of those plans obviously has been with VSL where we have now localised additional parts with them,” he said.
Pitso was unable to comment on IMSAf’s current local content in its D-Max bakkie, but Isuzu will increase in its overall local content thanks to components sourced from VSL Manufacturing and other component suppliers by an additional four percentage points.
“VSL is contributing about 1.2 percentage points of that increase,” he said.
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From liquidation to industry leader
VSL Manufacturing was born from the ashes of Stateline Pressed Metal (SPM) in Queenstown (Komani), which went into liquidation in 2018.
It was founded by two former SPM employees, Vuyo Skweyiya and Deon van Zyl, who secured funding, purchased SPM’s assets and established VSL later that year.
VSL Manufacturing is a 51% black female-owned and 49% white male-owned business, committed to inclusive industrial growth.
IMSAf appointed VSL Manufacturing as a key supplier in 2021 and transferred 74 metal stamping tools used on the 6th generation Isuzu D-Max production line, with this partnership propelling VSL Manufacturing’s annual revenue from under R1 million to R70 million, and setting the foundation for a transformative expansion.
Pitso said the majority of the additional components VSL Manufacturing will be supplying to Isuzu were previously imported, with two components sourced from another local supplier.
He said these components were the stamping of the large frame components for the exterior or body of the D-Max, which are the hood, doors, and pickup box.
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Proud moment for supplier development programme
IMSAf CEO and managing director Billy Tom said the project is a defining moment for the company.
“This R740 million facility is the physical embodiment of our belief in local manufacturing capacity.
“We didn’t just meet a compliance mandate: we incubated a world-class supplier,” said Tom.
“By committing to VSL, we secure our supply chain, increase our local content, and, crucially, validate the potential of transformative, black female-owned businesses in the heart of the Eastern Cape,” he said.
Tom added that VSL Manufacturing’s new Gqeberha facility represents a critical capacity upgrade, enabling the company to meet the advanced technological specifications of the 7th generation D-Max components.
VSL Manufacturing MD and co-founder Vuyo Skweyiya highlighted the critical support the company received.
“The mentorship and commercial certainty provided through the Isuzu supplier development programme were non-negotiable for unlocking this scale of investment.
“This plant is a collective achievement, proving that with strategic backing, a truly inclusive, high-quality automotive value chain can thrive here in South Africa,” she said.
VSL Manufacturing received funding support from the Industrial Development Corporation (IDC), the Automotive Industry Transformation Fund (AITF) and the Black Industrialist Scheme (BIS) for the new facility in Struandale.
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Technical support from Isuzu
Pitso said Isuzu has largely provided non-financial support to VSL Manufacturing, particularly in the technical space in terms of integrating the tooling transfer.
He said from a quality systems point perspective, Isuzu also provided engineering and localisation support.
“The investment that Isuzu usually makes is in the tooling or the moulds that make our parts,” said Pitso.
He added that VSL Manufacturing’s new facility is an extension of the existing plant the company has in Komani, with both operations set to continue running.
He explained that the Komani facility will continue pressing components for the 6th generation D-Max and the new facility will be pressing components for the current, or new generation, bakkie.
“The line they [VSL] have invested in here [Struandale] is a fully automated, state-of-the-art line, which does not necessarily accommodate the old tooling VSL has at the Komani, or Queenstown, plant,” he said.
Pitso said details about the launch of the new-generation D-Max “will be announced by the relevant people in the organisation once we have got alignment of what needs to be communicated”, and the focus at the moment is on the current generation D-Max.
This article was republished from Moneyweb. Read the original here.
