Tuesday, June 29, 2010

FORD TAKES BBBEE SERIOUSLY



Ford has announced the establishment of a world class Supplier Incubation Facility in
Silverton, Pretoria that will provide skills development and training for BBBEE
companies.

The announcement follows the company’s confirmation of a R3 billion investment to
expand manufacturing operations for its next-generation global compact pickup truck
programme in Silverton, and Puma diesel engine production at its Struandale, Port
Elizabeth facility.



The 7,200 sqm Supplier Incubation Facility is a joint initiative between Ford, the Gauteng
Provincial Government and Tier 1 Suppliers who directly supply FMCSA. The Silverton
incubation centre is a Broad Based Black Economic Empowerment (BBBEE) initiative
that will help develop small businesses by providing professional support and growth
opportunities. Entrepreneurs will be selected and housed at the facility, enabling them to
supply the new Ford production line.

The Gauteng Provincial Government (GPG) has committed R105million to the project.
Funds will be disbursed through the Automotive Industrial Development Corporation
(AIDC), which has earmarked R55 million for training, development and BBBEE
companies' start-up costs, and the Supplier Park Development Company, Ltd (SPDC),
which has allocated R50 million to build the facility. The initiative is part of the Silverton
assembly site's transformation from a low volume, multiple vehicle plant to a high
volume, single model production facility in 2011.

“The Supplier Incubation Facility and BBBEE training programme is another example of
Ford's commitment to strengthen South Africa's position as a world class exporter of
vehicles and engine components,” said Joe Hinrichs, president of Ford Asia Pacific and
Africa. “As part of the One Ford plan we require a globally integrated automotive supply
chain and a highly trained workforce, and this programme will help us achieve that goal
in South Africa.’'

Firoz Cachalia, MEC for Economic Development in Gauteng, noted that the new
investment will make a vital contribution to growth and job creation in the province.
“Gauteng is committed to the development of the automotive industry and this facility will
enable us to meet our objectives,” added Cachalia.

A training and development plan has been jointly conceived by FMCSA and the
AIDC. The four-year training and development plan will enhance the overall skills and
knowledge base of automotive workers in Silverton, resulting in a globally competitive
workforce.

Amanda Nair, the CEO of Blue IQ, remarked that the new facility will assist in increasing
the global competitiveness of the South African automotive industry. “We are bringing in
black entrepreneurs and providing them with skills and training that will lead to the
creation of decent and sustainable jobs,” she said. Blue IQ is the Gauteng agency
responsible for the AIDC and the Supplier Park Development Company (SPDC) which
will manage the Incubation Facility.

Annual capacity at Silverton will increase to 110,000 vehicles in 2011. FMCSA, Tier 1
Suppliers and the Government are working with BBBEE companies to enable them to
participate in Ford's global pickup truck production programme.

“The automotive industry is one of the key economic sectors of the country and we are
pleased to have the support of the South African government. With their continued
assistance we will be able to foster a strong and globally competitive auto industry that
will flourish,” said Jeff Nemeth, president and CEO of FMCSA.

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