Toyota’s Durban plant set for new investment

Japanese motor giant Toyota is set to make a major investment in its Durban manufacturing plant in Prospecton as it gets ready to start production of its new generation Corolla for the South African and export markets.

The head of Toyota South Africa Motors, Johan van Zyl, hinted about the investment this week on the company’s production of its millionth locally manufactured Corolla which rolled off the Prospecton production line last week.

But, Toyota South Africa officials were tight lipped yesterday about the investment plan, which they said would be announced only in January.

“The Corolla benefited from our R8 billion investment programme in 2008, which modernised the plant and introduced a state-of-the-art paint plant. With the new Corolla we hope to start our next round of investment and look forward to sharing this plan when our first new generation Corolla models roll off the line,” said Van Zyl.

Questioned about the plan, Toyota South Africa, spokesman Leo Kok said: “Investment figures cannot be announced yet, but we will do so early in the new year.”

However, he said preparation for local production of the 11th generation of the Corolla was well under way.

Kok said Toyota South Africa manufactured the Hilux, Fortuner and Corolla at its Prospecton branch for the South African and export markets. It also assembles all Hino trucks and the Ses’fikile taxis at the plant, which were built from imported kits.

Russell Curtis, head of the Durban Investment Promotion Agency, said the imminent investment was welcome news, especially in the wake of the recent strike in the South African motor industry.

“We are keen to hear what kind of investment Toyota will be making… generally, when there is a new model in the car industry, it does require new investment in a plant.

“Also, component manufacturers and suppliers would need to prepare and likely also make investments,” he said.

Zamo Gwala, chief executive of Trade and Investment KZN, said Toyota’s continued investment in its Durban plant was a vote of confidence in the region.

“It will also boost confidence in South Africa’s motor industry and have spin-offs for component manufacturers because Toyota’s motor manufacturing plant is the biggest in the country.

“They also have the largest car exports,” he said.

Meanwhile, Toyota South Africa celebrated its millionth locally made Corolla milestone at the Prospecton plant last week, when a white Corolla came off the production line.

The company said the achievement “crowned” six years of successful production in which the Corolla was produced in left- and right-hand drives and exported to, among others, Eastern and Western Europe, the Caribbean and Africa.