Automotive JV in E Cape raises hope

Luxembourg - International Automotive Components (IAC) has announced that it has formed a joint venture with Feltex Automotive, a South African-based supplier of automotive flooring, acoustics and trim components.

The joint venture marks IAC's initial entry into the growing South African automotive region.

IAC will provide design, engineering and manufacturing expertise for vehicle interior components.

In addition to product and process expertise, Feltex brings experience from successfully operating in South Africa since 1937.

The company will be located in East London.

According to industry projections, the South African automotive market is expected to steadily increase annual passenger car production to more than 600 000 units by 2018.

The joint venture will initially support current production requirements for Ford, Mercedes-Benz, Toyota and Volkswagen SA operations.

The company's headquarters are in Luxembourg and it operates 79 manufacturing facilities in 18 countries and employs about 26 000 people globally.