Larry Claasen

Industrial Correspondent

THE R394m Nelson Mandela Bay Supplier Park in Uitenhage, Eastern Cape, is in the final stages of negotiations that may see up to seven car components companies setting up there.

The proximity of the park to Volkswagen’s vehicle manufacturing plant, shared infrastructure, logistics support and utilities could see parts suppliers saving up to 20% in costs.

Being close to the Volkswagen plant meant suppliers did not have to spend on packaging as components could be transported to Volkswagen when necessary, said Auto Supplier Park GM for development Johan Olivier.

The savings could be substantial for Volkswagen as the firm will not need to have a warehouse for parts or a large supply of components on hand.

The supplier park will have its own central warehouse that will cater for the needs of companies set up there.

The Nelson Mandela Bay Supplier Park will create 600 permanent jobs, and follows the development of the Automotive Supplier Park in Rosslyn, Pretoria, last year.

Olivier said the supplier park would be useful for smaller companies looking for a cost-effective way of being integrated into the production systems of vehicle manufacturers.

The Uitenhage park will also provide a platform for foreign component suppliers that want to set up shop in the country, but do not want to spend a lot of money doing so.

International logistics company Schnellecke agreed last month to base a large part of its African operation at the park. Schnellecke will become an anchor tenant and take occupancy in September.

Olivier said the park was not in competition with the industrial development zone in Coega, near Port Elizabeth.

Olivier said many of the companies at the park would supply safety components.

Coega Development Corporation CEO Pepi Silinga backed the development of the Uitenhage facility, saying it was "understandable and correct" that the local motor industry would cater for its own needs by setting up a supplier park.