A KwaZulu-Natal aluminium alloys manufacturing company, Bingelela Alloys, which is based in Richards Bay, is a perfect example of the objectives that the South African Automotive Master Plan 2035 has set to achieve. These include increasing local content in vehicles assembled locally, doubling employment, achieving industry transformation across the value chain, and deepening value addition across selected commodities.
Bingelela manufactures aluminium alloys that are supplied to companies that manufacture aluminium rims for vehicles. Their clients supply the rims to companies that manufacture vehicles. In the industry, Bingelela are known as Tier 1 suppliers.
The Chief Executive Officer (CEO) of Bingelela Alloys, Mr Sizwe Khumalo speaks fondly and contently about company’s his contribution in the implementation of the master plan, which has been boosted by the support it received from the Automotive Industry Transformation Fund (AITF).
The fund was created to support the implementation of the master plan by multinational automotive manufacturers. Its objectives include supporting black owned entities, driving job creation, and enabling meaningful transformation and growth of the automotive sector across the value chain.
“We are pleased to be an example of what the implementation of the automotive master plan can achieve. We are ticking several boxes of the objectives of the master plan in that our company is contributing in localisation, import substitution, job creation, black economic empowerment and transformation, and industry skills development. We also contributing in growing the economy of the KwaZulu-Natal,” says Khumalo.
Khumalo says Bingelela owes its existence and success today to the support it received through the AITF
“The support we obtained in the form of a working capital loan was critical as it allowed us to continue operating, as well as to grow and the sustain our business. Without it we could have probably even closed down, because of the high costs of the raw material that we use in our operation,” says Khumalo.
He says according to his knowledge Bingelela is the only company that is manufacturing and supplying aluminium alloys in South Africa. The company is a product of the Automotive Master Plan in that it was established in 2020 to fulfil the needs of companies who wanted to source products locally in line with their localisation commitments as part of the objectives of the master plan.
“Before we entered the value chain, the two main manufacturers of car wheels in South Africa were sourcing this raw material from abroad. Our intention was to substitute these imports. We were aware that our two potential customers were also under pressure from the Original Equipment Manufacturers (OEMs) as government and the industry in general were propagating localisation while they were importing their raw material. As a result, they were looking for alternative local sources to supply the product and we were available to plug the gap,” recalls Khumalo.
He is pleased that Since 2021 the company’s volumes of production have been increasing consistently as the two companies that they supply progressively gained confidence in their capacity to assist reduce the imports of the product.
“It has been a process. But we are glad that from 100% imports, one of the companies that we supply has increased their local sourcing of the product from us to 70%. This has contributed in us increasing our production. As things stands, we are in the process of expanding our business. Part of the process is setting up a new production facility as our lease of furnaces from Hilumin, that has been hosting us since our inception, comes to an end in December this year,” says Khumalo.
He is excited that the expansion of the commpnay will create more job opportunities. Currently the company employs 18 people, but is planning to introduce a 24-hour production schedule, that will require more employees.
Ready for delivery – the Chief Executive Officer of Bingelela Alloys, Mr Sizwe Khumalo next to the ingots of aluminium produced by his company and ready to be delivered to the customers
The Chief Executive Officer of Bingelela Alloys, Mr Sizwe Khumalo inside the factory (3803)
The Chief Executive Officer of Bingelela Alloys, Mr Sizwe Khumalo with the company employees (Names) 3805
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