TrelleborgVibracoustic sets up JV in South Africa, plans production site
ERJ staff report (LMH)
Weinheim, Germany -- TrelleborgVibracoustic has entered into a majority owned joint venture with Ikhwezi Investment Holding in East London, South Africa to locally manufacture chassis bushings for Mercedes-Benz C and E class vehicles and support South African automotive suspension systems supplier, Foxtec-Ikhwezi.
The company will be known as TrelleborgVibracoustic-Ikhwezi. Foxtec-Ikhwezi, a JV between Ikhwezi and the German based company Otto Fuchs, is also based in East London and is a long-standing producer of link arms for the Mercedes-Benz global network of assembly plants.
TBVC is also investing around Euro 3.4 million in a new facility. The 4000 sq.m plant is scheduled to start production in 2013. It will initially employ 21 people increasing to around 55 once peak volumes are reached, TBVC said. Ikhwezi has a 30-percent share and will provide support services such as recruitment, finance and IT management. TrelleborgVibracoustic will have full product design and manufacturing responsibility.
TBVC currently supplies several suspension mounts for the C and E class and has recently been nominated on the next generation C Class, which is scheduled to start production in 2014. The vehicles are assembled in Mercedes-Benz plants worldwide as well as locally in East London.
“We currently supply South Africa from our European locations. In line with our group strategy of global support and local supply this new business award seemed like an excellent opportunity to look for a more permanent solution in the region,†says Axel Wersel, TBVC president for chassis.
He added, “In addition the new JV provides us with a strong foothold in South Africa, an automotive market that is set to grow significantly over the next four years.â€
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News release from TrelleborgVibracoustic
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