Posted: October 2, 2023
During Dunlop’s celebration of 50 years of production addressed by the Minister of Trade, Industry and Competition, Mr Ebrahim Patel today, it was announced that Dunlop’s Japanese-based parent company, Sumitomo, will be investing R1.7 billion into its Ladysmith plant. This significant investment is a beacon of economic growth and development for Emnambithi or Ladysmith, marking the celebration of 50 years of steadfast production in the region.
This substantial investment will serve as a robust pillar, bolstering local production and fortifying the output of the factory. It is a big step towards the modernisation and enhancement of the plant facilities, ensuring the support and creation of local jobs, and contributing to the economic prosperity of the region.
“I welcome the announcement today of a new investment of R1,7 billion. It will provide a boost to local production and strengthen the output of the factory, supporting local jobs. The new investment will help to modernise and improve the plant. It is also a step towards the R2 trillion target that President Ramaphosa has set for new investment over the next five years,” said Minister Patel.
He noted that Dunlop tyres is a household brand name in South Africa. One out of every five tyres on cars on South African roads is manufactured by Sumitomo Rubber Industries at the Ladysmith plant.
“The investment that was announced today is a signal of the confidence that international investors have in South Africa and to the progress we have made with the South African Automotive Masterplan,” said Minister Patel.
He emphasised the pivotal role of the Automotive Masterplan in supporting this investment. The Masterplan is a collaborative initiative where the government provides incentives for both the assembly of cars and the production of components in South Africa. This partnership, encompassing investors, workers, regulators, and policymakers, is founded on mutual contribution and benefit, reinforcing the commitment to bolster local production and ensure the growth and sustainability of the domestic market.
Addressing the event, Minister Patel said: “In alignment with the objectives of the Masterplan, government has taken action against unfair trade practices that undermine local production and employment.”
He highlighted the approval of anti-dumping duties ranging from 7% to 43.6% on dumped imports of passenger, truck, and bus tyres from China, a significant move to protect and support local industries and jobs.
Minister Patel reaffirmed the government’s support and commitment to continue working with investors and workers to ensure the sustained growth, development, and prosperity of the South African automotive industry and the economy at large.
Bongani Lukhele – Director: Media Relations
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Issued by: The Department of Trade, Industry, and Competition (the dtic)
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