Localisation: Ogihara plant opens in Durban

The deal and, ultimately, the new Ogihara South Africa facility at Durban's Dube TradePort show what can be accomplished when a global multinational, local expertise, and patient capital join forces.

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As South Africa's automotive industry grapples with rising global tariffs, intense competition from Asian automakers, and a fragile local economy, Toyota Tsusho Africa, a subsidiary of CFAO South Africa, has chosen a different path: to increase its investment rather than withdraw.

Their plan came to fruition with a complex, multiyear investment that facilitated R400 million in structured funding put together by Standard Bank Corporate and Investment Banking (CIB).

This supported the establishment of a R1.1 billion stamp-press manufacturing plant at Dube TradePort in KwaZulu-Natal (KZN). This greenfield project by the Japanese trading giant in partnership with Thailand's Ogihara is one of the largest automotive localisation efforts in the province, demonstrating strong confidence in the region despite recent challenges.

Investing when others retreat

The timing of the investment is noteworthy. As automotive companies reduce their presence in South Africa, such as Goodyear's decision to shut down its Eastern Cape tyre plant, Toyota Tsusho has opted to expand its manufacturing operations in the country.