Volkswagen SA has announced a R2,16-billion catalytic converter contract to supply components for the new Polo due in Europe this year.
Volkswagen SA has announced a R2,16-billion catalytic converter contract – the Uitenhage manufacturer’s largest component export deal ever. The contract is for the supply of catalytic converters for the new 1,4i and 1,6i Polo models due to be launched at the Frankfurt Motor Show in September.
The catalytic converters, to be exported to Europe over a period of five years, will be manufactured by Faurecia Exhaust Systems SA in Port Elizabeth.
Volkswagen managing director Hans-Christian Maergner said the contract was unique as it was the first time that the company had been appointed the sole supplier of catalytic converters for a VW model on a worldwide basis.
“SA’s growing importance as a world centre of catalytic converter manufacture has enabled us to secure a significant export contract that will be used to offset the foreign exchange costs of bringing imported VW and Audi vehicles and CKD components into this country,” said Maergner.
“It is well known that catalytic converters contracts are highly sought after by South African motor manufacturers because of their high value and beneficiation of locally-produced raw materials including stainless steel and precious group metals (PGMs) like platinum and rhodium.
Faurecia Exhaust Systems general manager Henry Heuer said the award of the catalytic converter contract had assisted the newly-established company substantially in fulfilling its business plans.
“It certainly is a major opportunity for our new company and reaffirms the substantial investment that our parent company in Europe has made in investing R6 million in new facilities and machinery,” Heuer said.