JSE-listed Metair is planning to create 3, 300 jobs in Stanger, northern KwaZulu Natal and in Silverton, Gauteng.
The manufacturer, distributor and retailer of batteries and automotive components informed investors that its board has approved a R900 million capital investment programme as it gears up to benefit from a number of new vehicle types entering production in South Africa.
Metair has secured key contracts to support Ford’s investment into the South African automotive industry.
“The board’s approval of a R900 million capital investment, including major investments in greenfield facilities, will create approximately 3 300 new employment opportunities,” the company said on Friday.
“This project is estimated to generate between R25 billion and R28 billion of turnover over the model life from mid-2022, depending on the final project volumes and launch date.”
The company added that the total funding requirements are estimated to be around R1.3 billion with capital investment in property, plants and equipment estimated to be in excess of R900 million.
The company will construct a new manufacturing facility in Stanger, northern KwaZulu Natal, and a new logistics facility in Silverton, Gauteng, where Ford’s manufacturing plant is located.
Furthermore, Metair’s Hesto Harnesses, which will be the largest beneficiary supplying a wide range of wire harnesses, a number of other subsidiaries will support Ford, including Unitrade, Automould and Lumotech, with a variety of wires, plastic and chrome-plated parts, as well as headlights and taillights.
“All investments are expected to deliver returns in line with Metair’s targets over the life of the contracts,” the company said.
Securing Ford as a major customer is a critical step in ensuring the long- term growth and sustainability of the Automotive Components Vertical business, said Metair in a statement.