Africa’s largest vehicle manufacturer, exporter and retailer, Toyota South Africa Motors (TSAM), has opened a 363 million rand ($44 million) new parts distribution warehouse in Ekurhuleni, Gauteng, South Africa.
The warehouse was built to serve the company’s Southern African Toyota, Lexus and Hino dealer network with daily deliveries including over fifty seven international destinations where proudly South African-built Toyota vehicles are exported to.
Johan van Zyl, President and CEO of Toyota SA Motors and a Managing Officer of Toyota Motor Corporation, said, “These investments lay the foundation for a mid-term strategy that will further develop the local automotive industry as envisioned by the Automotive Production and Development Programme (APDP). It will also strengthen South Africa’s position as a global manufacturing hub with its ability to fully support any locally manufactured vehicle, regardless of its destination.”
“The facility itself holds more than 2.2 million parts pieces worth more than 350 million rand ($42 million) and that supports 268 local suppliers. I am sure you see how important it is in light of future plans to develop the local component supplier industry,” he said.
The new facility has 39 000m2 of storage space and a further 3000m2 of office space. This area hosts the company’s Customer Service and Logistic Support divisions. Toyota has future plans to of making the warehouse at the largest of its kind on the African continent by adding a 38 000m2 space to it. He second phase will be completed by 2015.
Toyota South Africa had announced early this year that it would develop the newly opened facility and a local assembly for its Ses’fikile taxi.
“It is fortuitous that our new centre is opened on the eve of the introduction of the new Automotive Production and Development Programme (APDP). We believe that this programme will create an environment in which Toyota and the automotive industry can further expand its operations, in turn benefiting the local component industry,” Van Zyl said.
Toyota subsequently made further commitment to invest billions of rand (millions of Dollars) into the South Africa economy in the next couple of years.
Toyota’s five years, 8 billion rand ($960 million) Motor Industry Development Programme (MIDP) is set to conclude at the end of this year and will replaced by the Automotive Production and Development Programme (APDP) that will kick off next year. Although the company does not want to confirm the total investment planned for the coming five-year period, van Zyl says that it will be a multi-billion rand project.
