DURBAN - Toyota South Africa is forging ahead with its Automotive Supply Park development project, which is aimed to foster foreign direct investment in the eThekwini municipality and create desperately needed jobs.
The company has given this reassurance in spite of last week’s spate of looting and vandalism, which has been slammed by economists as an investment deterrent for South Africa.
Toyota's 7 200 employee-strong Prospecton plant in Durban was not damaged during the unrest, but it was forced to halt operations from July 12.
“We are looking forward to continuing with our plans of expanding investment through the construction of the Auto Supply Park, which has the potential of encouraging foreign direct investment in the city and creating much needed jobs,” Toyota SA chief executive Andrew Kirby said.
Kirby commended the city for addressing the concerns the company had raised about the impact of the unrest, and insisted that Toyota would not leave Durban, the province of KwaZulu-Natal or the country.
He said the company had resumed operations early this week after having implemented a six-day shut down.
Accompanied by senior officials, eThekwini Mayor Mxolisi Kaunda and a delegation from Toyota SA Motors division met this week to address safety concerns the company had raised following the civil unrest.
In a statement issued later, the City said both parties were committed to safeguarding the investment of Toyota and all other businesses around Durban.
The City would continue to create a conducive environment for the car manufacturer and other investors to thrive, said Kaunda.
“The City, working with all law enforcement agencies, has put in tough measures to safeguard businesses after a week-long civil unrest that engulfed the city,” he said.
“We are also accelerating discussions about the construction of the new Automotive Supplier Park, which is going to be a catalyst for job creation and business opportunities. We have a long-standing relationship with Toyota and we are pleased that the company has committed itself to remain in Durban and most importantly to expand its investment,” said Kaunda.
Kaunda also engaged captains of industry after a number of businesses, including the Durban port and the South African Petroleum Refineries, among others, were affected.
“The aim of the engagement is to assure the chief executive officers from a variety of industries of the City’s commitment to safeguard investments,” said Kaunda.
Last week, the Toyota Motor Corporation, headquartered in Japan, wrote a letter to the eThekwini municipality, asking what its action plan was given the uncertainty created by the unrest in the province.
Kaunda confirmed at the City’s executive committee meeting having received the letter, and said the company’s vice-president, Nigel Ward, who is also the Durban Chamber of Commerce and Industry’s CEO, had been reassured of the city being a conducive business space.
Toyota's plant in Durban manufactures its Hilux, Fortuner and Corolla Quest models.
From November 2021, it will start manufacturing Corolla Cross, a small SUV. It also assembles HiAce and Hino trucks.
The mayor was to continue engaging with more industry captains as part of the city’s economic reconstruction programme following the violence.
Kaunda’s roadshow will also include a virtual interface with international investors.
THE MERCURY