Isuzu’s massive R750-million factory expansion in South Africa

Isuzu Motors South Africa has invested heavily in two key partners operating in and around its assembly plant in Struandale, Gqeberha.

This plant is the Japanese carmaker’s key manufacturing hub for bakkies and commercial vehicles sold both locally and throughout broader African markets.

Isuzu helped its major panel manufacturer, VSL Manufacturing, build its R750-million purpose-built facility adjacent to the Isuzu assembly plant in Struandale.

The manufacturer was appointed to the automaker’s supplier development programme in 2021, which has enabled it to scale operations drastically.

VSL boasts a significant manufacturing facility located in Komani, while its laser cutting operations can be found alongside Isuzu’s assembly facility.

It is from the latter facility that VSL has been manufacturing panels for the D-Max bakkie for years, which justifies the automaker’s decision to invest in a key partner.

Amongst other investors are the Industrial Development Corporation (IDC), the Automotive Industry Transformation Fund (AITF), and the Black Industrialists Scheme (BIS).

These three partners contributed to VSL raising more than R300 million, while Isuzu Motors South Africa invested R260 million in the plant.

“This facility represents the culmination of years of rebuilding, of restoring jobs, and of proving that South African suppliers can compete at the highest level of global automotive manufacturing,” said VSL Manufacturing Director Vuyo Skweyiya.

VSL’s expanded facility delivers major production efficiencies, reduced logistical expenses, and enables synchronisation with OEM operations, while strengthening the local automotive value chain.

“From the pain of job losses in Komani has grown a modern facility that will produce parts, create livelihoods, and strengthen our industrial ecosystem,” noted Skweyiya.

“This plant is a beacon of what is possible when resilience, partnership and purpose come together.”

Expanded job creation

As the rest of the Eastern Cape grapples with unemployment and struggles within the manufacturing industry, the collaboration between Isuzu and VSL is creating jobs.

The expansion has created 52 new jobs in Gqeberha, while VSL’s Komani operation continues to sustain 66 employees, which it says forms a growing base of technical expertise and industrial capability in the province.

VSL has credited Isuzu South Africa for its hands-on supplier development and support, which has helped to transform the manufacturer.

“Isuzu did more than award a contract; they transferred tools, opened their supply chain to us, and worked closely to help us meet demanding global standards,” explained Skweyiya.

Billy Tom, President of Isuzu Motors South Africa, noted the importance of investing in key partners.

“At Isuzu, we are positioning ourselves for the economic growth of the African continent,” he said.

“We are building local capabilities that enable our operations here in Gqeberha to serve as an automotive manufacturing hub for the region.”

Beyond the expansion of VSL’s facility, Isuzu has also partnered with Eastern Cape Tyres and Dunlop to drive enterprise development in Gqeberha from within its assembly plant.

“This partnership shows the power of multinationals working together with a shared commitment to progress,” said Lubin Ozoux, CEO of Dunlop Tyres South Africa.

“We are proud to be part of an initiative that not only empowers local entrepreneurs but also ensures Isuzu Motors South Africa receives the highest quality service and technical expertise.”

Eastern Cape Tyres owner and long-standing Dunlop franchisee, Matthew Nondwai, called the partnership a culmination of three decades of hard work and belief in quality service.

“Starting out supplying small bakkie tyres and now supporting the assembly line for an automotive giant like Isuzu right here in the Eastern Cape, shows what is possible when big business supports local enterprise.”

“We are bringing world-class expertise to the Struandale plant and are incredibly proud to call this assembly line the newest addition to the Eastern Cape Tyres family.”