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Lighting up new markets--SAAW.

South Africa is geared up to nearly double vehicle production to 1.2-million by 2020--and component manufacturers from around the world are welcome to join the local industry for the ride.

Not only welcome--but needed, says Andrew Binning, organizer of the second South African Automotive Week (SAAW). "All the OEMs are working hard at increasing their local content in order to qualify for the support provided by the Automotive Production and Development Program (APDP). That is why SAAW has the official support of both the National Association of Automobile Manufacturers of South Africa (Naamsa) and the Automobile and Allied Manufacturers (Naacam)," he says.

Hosted in the Indian Ocean motor town of Nelson Mandela Bay (which includes Port Elizabeth and Uitenhage), SAAW 2009 will take place from October 7 to October 10. Support from the Department of Trade and Industry includes assistance with meeting the costs of international delegates attending SAAW. International interest from manufacturers in China, India, Taiwan and Holland shows that the African market is seen as being a potential growth area by the world's auto industry, says SAAW chairperson Alfred da Costa.

SAAW includes an expo, workshops, local factory tours and match-making meetings. "The match-making is perhaps the most important service for international visitors--particularly those who have not been active in the South African and African auto industry before," adds Binning. "We understand that there is a shortage of both time and resources, and that companies want value added to an industry event in the form of structured meetings," says Binning, who also heads up Inkanyezi Events. A specialist team is facilitating the meetings.

Naacam executive director Roger Pitot says the pressure is on OEMs from government through the APDP to support component manufacturing in South Africa. It will not be possible to meet an industry target of 70% local content without much higher production volumes. He has urged local component manufacturers to turn this to their advantage by entering into license agreements with foreign suppliers wanting to enter the African and local South African markets.

According to Pitot, South African companies already have the skills, facilities and infrastructure in place--but need technology. "Original equipment manufacturers demand that local suppliers have international licensing agreements in place. Therefore, having international links in place is not a choice but a necessity."

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"The match-making is perhaps the most important service 4 for international visitors particularly those who have not been active in the South African and African auto industry before."

Andrew Binning, organizer of the second South African Automotive Week (SAAW).


Supporting automotive investment

South Africa's automotive sector is supported by the Automotive Production and Development Programme (APDP), which has replaced the Motor Industry Development Programme (MIDP).

The APDP includes four main components:

* Stable import tariffs from 2012 of 25% for completely built-up vehicles and 20% for components used in vehicle assembly

* A local assembly allowance enabling vehicle manufacturers producing more than 50,000 vehicles a year to import 20% of its components duty free, reducing to 18% over three years

* A production incentive in the form of a tradable duty credit

* An automotive investment allowance, which would take the form of a direct grant to the value of 20% of the project over three years
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Title Annotation:innovation; South African Automotive Week
Author:Richardson, Ed
Publication:Automotive Industries
Geographic Code:6SOUT
Date:Jun 22, 2009
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