Occasions like today must be celebrated, especially looking at today’s context, where our industries are under pressure. This was said by the Acting Deputy Director-General of the Sectors Branch at the Department of Trade, Industry and Competition (the dtic), Dr Tebogo Makube at the launch of a strategic partnership between Wabtec South Africa and Lucchini South Africa (LSA). The event also marked the commissioning of a state-of-the-art a new state-of-the-art Honor Seiki CNC vertical lathe at its Germiston facility through the National Industrial Participation Programme (NIPP), today.
Makube said the launch brought together leaders from government, industry, and the rail sector to witness a milestone in the localisation and industrialisation of South Africa’s railway manufacturing value chain. He highlighted that the partnership demonstrates the power of public-private collaboration, supported by strategic programmes such as the National Industrial Participation Programme (NIPP), to drive technology transfer, skills development, and economic growth.
“South Africa’s key industries, including automotive, manufacturing, and rail, are currently under significant pressure, with some companies having already issued retrenchment notices. Against this backdrop, successes like today’s partnership are so vital,” he said.
Makube explained that the introduction of the Honor Seiki CNC vertical lathe machining system at Lucchini South Africa will increase local production capacity, improve efficiencies, support exports, and strengthen the country’s rail value chain by providing state-owned companies with high-quality, locally produced components.
“Beyond production, the project is expected to have broad multiplier effects on the economy, contributing to municipal revenues, income generation, and fiscal returns that support essential services such as education, healthcare, and housing,” he added.
In addition, Makube emphasised that the role of government in supporting local manufacturing. He said the NIPP allows public procurement to be leveraged to offset the impact of imports while creating jobs and developing skills. He reaffirmed that the dtic will continue to support local industry through incentives, trade measures, tariffs, and procurement initiatives, noting that partnerships like this set a benchmark for other companies to follow.
“This initiative showcases South Africa’s capacity to lead in the global rail industry while promoting localisation, skills development, and economic growth. Highlighting the importance of collaboration between government, industry, and strategic partners in driving sustainable industrialisation,” he concluded
The Acting Deputy Director-General of the Sectors Branch at the dtic, Dr Tebogo Makube, addressing attendees during the launch of the strategic partnership between Wabtec South Africa and Lucchini South Africa in Germiston.
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Issued by: The Department of Trade, Industry and Competition (the dtic)
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