A new R1.1bn investment in KwaZulu-Natal will see motor manufacturing components being produced for Toyota at Dube Trade Port in Durban.
The Ogihara SA joint venture by Toyota Tsusho Africa (TTAF), a subsidiary of Toyota Tsusho Corporation, in collaboration with Ogihara (Thailand) Corporation and Toyota SA Motors (TSAM), is poised to significantly add to local manufacturing with the production of small to medium stamped parts for TSAM.
Production is to start in July 2025. This strategic partnership will raise TSAM’s local procurement ratio by 2%, translating to an estimated R700m in annual spend, and also create about 250 new jobs by 2026.
The venture will phase in the sourcing of additional local press parts that are now imported. This will not only boost local industry capabilities and economic growth but will also lead to an increase of 25,000 tonnes a year in locally procured steel.
The inclusion of Ogihara SA in our local manufacturing ecosystem will not only create new job opportunities but will also enhance our capabilities in producing high-quality body parts for the automotive industry
— Andrew Kirby, TSAM CEO and president
TSAM will contribute R545m to the partnership with the TTAF-Ogihara joint venture investing R630m.
At the ground-breaking event at the construction site at Dube Trade Port this week, trade, industry and competition minister Parks Tau said the department is focused on implementing and enhancing master plans to boost key industries, attract investment, create jobs and drive transformation.
Speaking at the event, TSAM CEO and president Andrew Kirby said: “This joint venture marks a significant step towards our local value addition improvement strategy by localising the production of these critical components.
“The inclusion of Ogihara SA in our local manufacturing ecosystem will not only create new job opportunities but will also enhance our capabilities in producing high-quality body parts for the automotive industry. This collaboration exemplifies our commitment to localisation and underscores the possibilities for growth and development in KwaZulu-Natal.”
Toyota produces five vehicles at its Durban plant: the Corolla Cross, Corolla Quest, Hilux, Fortuner and Hiace Ses’fikile.
Ogihara Corporation manufactures die-press automotive body parts and assemblies.
Toyota Tsusho Africa specialises in supply chain management and production assembly. It has a business service offering consisting of procurement and supply of production parts, raw material and equipment as well as parts assembly and steel processing.
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