GlobalSupplier - Daimler

18
South Africa Business
SMA Engineering opens EL plant
Pure piping
AIRCONDITIONING and heating pipe manufacturers, SMA Engineering, have just
opened a new plant in East London to supply their high-quality pipes for the
Mercedes-Benz C-class, and scooped an additional bonus by winning an order for
pipes for the new Mercedes-Benz E-class.
SMA’s Managing Director, Walter Schick, said
the company’s Backnang plant in Baden-Wurttemberg
near Stuttgart supplied air-conditioning
and heating pipes to Mercedes-Benz in Germany.
When DaimlerChrysler decided to manufacture
the W203 in South Africa, SMA was invited to
South Africa to see if they could establish a plant
in East London.
The initial investment of R15,4-million to
renovate an existing building, buy new
equipment and train staff increased to
R27-million in October 2000 when the company
decided to build a custom-built plant. Of that
amount, R12-million was spent on the site and
the building, and R15-million on equipment.
“I am pleased to announce that today we have
received new orders to supply the new W211
E-class which we will be exporting from this
plant,” he said.
Indus investment. An international listed
company, Indus, which bought a majority shareholding
in SMA Automotive in Backnang last
year, fully supported the partnership with
DaimlerChrysler as well as the need to locate the
plant in East London.
Dr Winfried Kill, Chief Executive of Indus
Holding AG, said he was deeply impressed with
what had been achieved since January when the
establishment of the plant was first discussed.
“It is unbelievable what has been established in
such a short period,” he said.
Indus, based near Cologne, has an investment
policy to buy majority shares of small and
medium companies that produce capital goods.
“At present we have majority shares in 35
companies, each one operating in a specialist
field without any connection between them.
Each maintains its own independence and
flexibility”, said Dr Kill.
“In 2001 we expect Indus Holding to turnover
DM1,26-billion. The companies in our portfolio
have 4 000 employees and in the last five years
we have had an average compounded growth rate
of 20%.”
Highest quality. SMA has earned the highest
quality standard available for the automobile
industry - the new ISO/TS 16949, which brings
together the standards of the European VDA6
system and the American Quality Standards
system.
Senior President: Audit of the German-based
certifying authority, International Cert, Armin
Obstbaum, said the certification was positive
proof that South Africa could be a base for auto
suppliers capable and competitive enough to be
global players.
“This is the result of good organisation and
teamwork within the organisation at all levels,”
Obstbaum said.
He praised SMA’s General Manager, Stephen van