Delta Motor Corporation and Bosal Afrika have secured a R1,3-billion catalytic converter export contract. The catalytic converters will be fitted to the Opel Corsa.
Delta Motor Corporation and Bosal Afrika have secured a R1,3-billion catalytic converter export contract.
The latest export deal closely follows the extension of Delta and Bosal’s R76-million car jack export programme to General Motors’ North American operations – for an additional five years.
The car jack contract – first initiated between Delta and Bosal during 1994 and which is expected to run until 2005 – is now valued at a total of R133-million and will see the supply of more than three million additional jacks.
To commence in 2003, the new six-year contract will see the supply of 1,2 million catalytic converters from Bosal’s Pretoria plant to the company’s Czech Republic operation, where the converters will be welded to exhaust manifolds. Thereafter, they will be shipped to Opel assembly plants in Germany and Spain for fitment to the Opel Corsa model. Production will start during November this year.
The cellular ceramic substrate, which forms the core of the converter, will be produced by NGK at their Cape Town facility and supplied to OMG (previously Degussa) in Port Elizabeth where the product will be coated with precious metals and other chemicals before assembled by Bosal.
Delta Motor Corporation Director of Exports and Allied Business André van Rooyen said that South Africa has become a leading supplier of catalytic converters as its input costs of key raw materials like stainless steel and platinum group metals are available at globally competitive prices.
Van Rooyen said that the extension of the car jack contract and the new catalytic converter contract were evidence of a new international confidence in South African suppliers.
Bosal Managing Director Willie Bodenstein said the new contract represented one of the largest orders ever placed with the company.
“The Opel project is the result of our close working relationship with Delta. Quality and on time delivery of our existing converter programs have helped considerably in securing this contract,” said Sams.
Adding that the contract will result in the creation of 40 new jobs at Bosal, Sams said the window of opportunity for local manufacture and exports is widening in South Africa.
