Pretoria – Mercedes-Benz group of companies in South Africa (MBSA) were proud participants during the sod turning ceremony of the Boysen Group at the East London Industrial Zone (ELIDZ) Automotive Park today. The German-based exhaust technology experts are the second new international company to set up shop locally to supply MBSA’s next generation W205 C-Class production from 2014.

Boysen develops and manufactures exhaust manifolds, catalytic converter silencers and exhaust systems. The awarding of the W205 supply contract to Boysen opens opportunities for their expansion into South Africa, with consequent investment and job creation benefits for the country.

One of the key goals for MBSA, who previously announced a R2.5 billion investment into new technologies, facilities and skills development for the W205, is to stimulate sustainable job creation over and above the opportunities that the company already creates for the approximately 2 500 strong workforce at its manufacturing plant in East London. As a global leader in its sector, Boysen’s presence at the ELIDZ will result in the transfer of cutting edge technology and know-how to the local component manufacturing community.

Vice president for manufacturing at MBSA, Arno van der Merwe, says: “We have taken a conscious decision during the planning phases of the W205 project to work with partners such as the ELIDZ to bring global supply leaders to the country, in support of government’s drive for content localisation, skills development and job creation.”

CEO and president of MBSA, Dr Martin Zimmermann, reaffirmed the company’s commitment to the sustainable growth of the automotive industry when he spoke at the annual South African Automotive Week event held in Port Elizabeth this week. “As the largest contributor to the country’s GDP, leaders in the automotive manufacturing sector and government have a great responsibility to the nation to look critically at both the stumbling blocks that impede us and the opportunities for expansion,” he says.

Earlier this year, the first new international supplier to MBSA’s W205, RG Brose, took up residence at the ELIDZ with an investment of R80 million. Construction of their new premises commenced in May 2012. They will supply seat structures and door modules to the W205. Three more international suppliers are expected to come on board in terms of local production or assembly, and discussions are underway with a few more.

“In addition to the benefit to the economy of the country, having world-class component suppliers right on our doorstep holds significant advantages for our Just-in-Sequence production model, such as improved efficiency and logistics, ” van der Merwe adds.

MBSA are one of four Daimler AG plants worldwide that will be building the next generation C-Class. The company’s investment signals its confidence in the country to continue building award-winning, world-class cars.

“This is a win-win situation for everyone involved,” van der Merwe says.