Structuring Lucrative Joint Ventures between SA and Malaysia Toolmakers

Recognising the potential for toolmaking activities, given that the South African motor industry has a target of 1 million vehicles by 2020 and to increase the local content to 70% from the current 35%, Malaysian toolmakers have identified South Africa as a country of opportunities to grow the local toolmaking industry.

At the recent TASA Conference, held during the Afrimold exhibition, Mr Amrizal Majid, CEO of Malaysian Toolmaking Company, Miyazu, gave a presentation on the development of the Malaysian toolmaking industry from 1980 to the present. The presentation inspired the audience as it gave an idea of how Malaysian toolmakers progressed from supplying small tools to being able to produce complete vehicles with local tooling. This learning curve has helped them to develop a strong understanding of how to project manage all the tools needed for a full vehicle. This has enabled Miyazu to become a one-stop-shop to OEMs, an area where South African toolmakers are at a distinct disadvantage.

By partnering with Malaysian toolmaking companies, South African toolmakers can expect to gain an understanding of how to grow the toolmaking fraternity in a developing country. Since Malaysian toolmaking companies supply products into Europe, the United States and South America, South African toolmakers who partner with these companies will also gain immediate access to international markets.

Malaysian toolmaking companies such as Miyazu consider it a positive factor that there are export credits available on the exporting of tools from South Africa and that tools can be exported into the USA and Europe tax-free. Furthermore, South Africa’s positioning in the same time zone as Europe, the good banking system and the fact that European designed vehicles are being manufactured in South Africa for export worldwide will also provide a distinct advantage to the Malaysian/South African produced tools.

South African toolmaking companies interested in exploring a possible joint venture with Malaysian counterparts are encouraged to contact Henk Snyman on (012) 643 1285 or email on henks@tasaweb.co.za to find out more about this opportunity.

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Author: Erin MacInnes from TASA. Originally distributed by MyPR.co.za.