A Cardiff-based car components company has clinched a deal to buy high quality steel tube from South Africa for shock absorbers. PAI of Cardiff chairman Nigel Payne said the deal is for five years and worth a six figure sum.

The contract will safeguard jobs at PAI and lead to more work for supplier firms in Wales.

Robor Precision Tube of South Africa and PAI reached agreement after several months of work by the two companies and Renaissance Directions International, a business partnership development company. PAI is an official source of supply to 1st, 2nd and 3rd tier suppliers in the UK. Robor Precision Tube is a leading cold rolled tube manufacturer in South Africa and part of Barloworld Robor (Pty) Limited.

Exports of automotive components from South Africa have grown in the last two years and are set to increase even more.

A key factor in the success of this contract will be the support for export growth that is provided by the Motor Industry Development Programme (MIDP), which is a South African government initiative, and the European Union funded Trade and Investment Development Programme (TIDP).

Nigel Payne visited the Auto Africa show this year for the second time and is convinced that there are several opportunities for 1st, 2nd and 3rd tier suppliers to grow internationally and supply the European market.