Toyota’s flooded Durban factory reopens for business

Hilux, Corolla Cross and other popular models are being produced again

17 August 2022 - 07:18
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Newly-built Toyota Hilux bakkies roll off the Prospecton assembly line.
Newly-built Toyota Hilux bakkies roll off the Prospecton assembly line.
Image: Denis Droppa

Toyota’s car factory in Prospection, Durban, is officially up and running again four months after being closed due to flooding.

On August 17 the Corolla Quest was the last assembly line to reopen after the Hilux, Fortuner, Corolla Cross, Hiace Ses’fikile taxi and Hino lines had been earlier brought back on stream at reduced capacity. The factory had also resumed operations of its export line of catalytic converters after around 150 technical experts and engineers were brought from Japan to help with repairs.

The 87 hectare plant was forced to temporarily close on April 12 after being submerged in water when the Shongweni dam sluice gates opened and caused water to surge down the Umlazi River and burst its banks during the devastating floods that affected KwaZulu-Natal.

It has been a clean-up and repair operation of a massive scale and the cost of the damage and lost production has run into tens of billions of rand. Toyota lost production of around 68,000 vehicles and had to scrap about 4,000 already built units that were too badly damaged. The latter cost R1.6bn at an average price of R400,000 a vehicle.

The shutdown caused long waiting lists for popular models and the priority will be to clear the backlog, Andrew Kirby, president and CEO of Toyota SA Motors (TSAM), said on Tuesday at a reopening ceremony attended by members of the media and newly elected KwaZulu-Natal premier Nomusa Dube-Ncube.

Though every component was repaired and tested after damage from the clay-like mud that flooded the factory, the ramp up made provision for possible equipment failures over time. The plant remains vulnerable and will take time to return to full production, said Kirby, but is expected to be back to full, pre-floods capacity by December, with additional shifts added to help clear the backlog.

About 50% of the Prospecton plant’s production is exported to 74 countries, including all of Western Europe, the rest of Sub-Saharan Africa and Central America. The first post-flood export shipment to Europe took place on August 12.

Prior to the floods, operations at the factory were halted due to Covid-19 lockdowns in 2020 as well as the civil unrest in 2021. Despite these challenges, Kirby said there was no impact to Toyota’s long-term future in SA.

“We’ve survived the biggest crisis in our 60 years as a company,” said Kirby, while praising the Toyota parent company for the assistance it rendered.

“We communicated with Japan (Toyota Motor Corporation) on the night of the April 12. I very quickly got a message back of support and an offer from them to do whatever they could to help. They dispatched a lot of experts to support us, helping us to repair, identify, diagnose and replace and then communicating with suppliers all over the world to source replacement parts,” said Kirby. 

He said not a single job had been lost during the crisis.

Toyota also held onto its position as SA’s most popular brand during the four-month shutdown, through strong sales of imported models like the Urban Cruiser and Starlet. Prior to the plant closure Toyota had a market share of around 30% which dwindled to 17%, 18.1% and 16.3% in May, June and July respectively.

Kirby said strong countermeasures will be put in place to prevent the plant from being flooded again.


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