The Department of Trade, Industry and Competition (the dtic) welcomes the forthcoming launch of a strategic partnership between Wabtec South Africa and Lucchini South Africa (LSA), marking a significant milestone in the country’s rail manufacturing sector. The official launch will take place at 3 Sigma Road, Germiston South, Johannesburg, on 7 November 2025.
Through a joint investment of US$2.6 million (approximately R47 million), Wabtec and Lucchini South Africa have acquired a state-of-the-art CNC machining system to support local railway wheel production. This investment represents a major step towards the localisation of the wheel machining process, which has historically been outsourced abroad. By bringing this capability in-house, LSA will enhance the efficiency and competitiveness of South Africa’s railway manufacturing value chain.
The Deputy Director-General of the Sectors Branch at the dtic, Dr Tebogo Makube, hails this investment as a demonstration of confidence in South Africa’s industrial capabilities and transformation agenda.
“This partnership between Wabtec and Lucchini South Africa is a clear example of how international collaboration and local enterprise can work hand in hand to strengthen domestic manufacturing. The introduction of advanced CNC machining technology will not only reduce production costs and improve quality but also enable South Africa to build local capacity, replace imports with locally produced components, and gain access to new export markets through globally competitive manufacturing standards,” says Makube.
In addition, Makube notes that the installation of the CNC system will reduce the cost of poor quality, improve lead times, and ensure higher product precision. Furthermore, it will support import substitution, industrial deepening, and the transfer of advanced technical skills to the local workforce and all critical priorities under South Africa’s reindustrialisation agenda.
“The project forms part of the National Industrial Participation Programme (NIPP), as a result of Wabtec’s supply of rail goods to Transnet, through which foreign investment obligations are channelled to enhance local productive capacity,” he says.
The Managing Director of Lucchini South Africa, Ms Gcobisa Bokleni-Toyi, says the collaboration with Wabtec and the dtic is not only a commercial success but also a driver of national economic growth and industrial inclusion.
“This investment will give Lucchini South Africa a true competitive edge, improve quality, reduce lead times, and position us to trade globally while building local capability and creating jobs,” says Bokleni-Toyi.
She adds that the partnership with Wabtec and the dtic has created significant opportunities for Lucchini South Africa. Beyond its commercial benefits, it has introduced advanced technical skills, supported staff training, and contributed to job creation within the business — positively impacting the broader South African economy.
Together, the partnership between Wabtec, Lucchini South Africa, and the dtic demonstrates the power of collaboration in driving industrial modernisation, fostering local innovation, and building a globally competitive manufacturing base rooted in South African expertise and enterprise.
MEDIA ENQUIRIES:
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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