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South African based substrate suppliers, coaters, canners and associated industries, will jointly beshowcasing the catalytic convertor industry supply chain at the 2017 National Association of Automotive Component and Allied Manufacturers of South Africa (NAACAM) Show to be held inconjunction with the National Localisation Indaba at the Durban ICC from 5-7 April.

 The industry partners are collaborating for this exhibition in order to heighten the understanding ofthe impact of the catalytic convertor industry on the South African economy, as well as theimportance of a well-designed package of state and customer support to ensure the long termsustainability and growth of its presence in the country.

 In support of NAACAM’s transformation goals and initiatives in the automotive sector – andspecifically the component manufacturing sector – the platform of this exhibition will also be usedto showcase opportunities for black South African entrepreneurs.Participating at the stand are: Substrate Supplier NGK; Coaters BASF, JMSA, Umicore; CatalerSA, Canners Benteler, Boysen, Tenneco, Eberspächer and Component Manufacturer SeniorFlexonics.

Background to the catalytic convertor industry

Reduction of auto emissions is a rapidly growing imperative around the globe, with policy framework being developed around sustainability decisions. As emissions regulations tightenaround the world, projections are that the demand for autocatalysts, diesel and petrol particle filters will more than double over the upcoming two decades, while the “accessible” globalpassenger car market is estimated to grow by about 60% by 2022.The catalytic converter industry is composed largely of global multinational manufacturerswho supply to the OEMs from facilities strategically located internationally, including plantsin South Africa. The South African production facilities were established at the request ofthe OEMs and commenced manufacture of catalytic converters in the early 1990s. In itsover 25 years of existence in South Africa, the catalytic converter industry has achievedremarkable growth, averaging compound growth in the region of 14% per annum. The industry isthe highest contributor to component export revenue and has the highest local content at over85%.

The South African catalytic converter industry is a complex vertically-integrated supplychain comprising some more than 50 manufacturing plants. The industry remainsone of the very few downstream manufacturing industries in which South Africa has asignificant global footprint. The companies comprising this supply chain are the global leaders intheir respective areas, and have invested in current state-of-the-art production facilitiesequivalent in both scale and technology to those in their overseas operations.

Autocatalyst production remains the largest global consumer of platinum group metals (PGMs),consuming some 8 million troy ounces per annum. South Africa alone beneficiated 15% of locallymined PGMs in the production of catalytic converters. The industry is also the largest consumerof locally produced stainless steel.

 The industry is a substantial generator of highly skilled employment, with over 5 000 directjobs (excluding OEMs and stainless steel manufacturers) and an estimated more than 30 000indirect jobs resulting from upstream and side-stream suppliers. The industry places a highfocus on skills transfer and development, with all companies providing high-tech trainingand education both locally and overseas. The industry has invested in excess of R5 billion inplant equipment, people development, and process development to support transfer ofproduction and new technologies to South Africa. This has resulted in significant skillsdevelopment in the support industries as well as within the catalytic converter industry.The concept is amplified when one considers the role of companies in the autocatalyst valuechain in driving production of other new and advanced manufacturing segments such as fuel cell related production. Thus maintaining the base already set by the autocatalytic manufacturers is crucial.



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