French car maker Renault is to buy 14 million catalytic converters from South
Africa, reports Cartoday.com (28/11/00).
According to the report, the six-year export contract – worth 11 billion
rand- begins in February 2001 and ends in 2007. Components will be sourced
from six Port Elizabeth-based suppliers – NGK, Engelhard, Johnson Matthey, Fuare
Ecia, Autocat and Corning – and are to be supplied to Renault in Europe.
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By GlobalDataQuoting Andre Caussimon, Renault’s vice president for sub-Saharan Africa, Cartoday.com
says that the contract indicates the competitiveness of South African suppliers
in terms of both quality and cost. The contract will also provide Renault with
export credits – offsetting import duties – thus allowing the company
to price its vehicles competitively in the local market, Mr Caussimon is reported
as saying.
Mr Caussimon reportedly said that the contract is in line with the company’s
growth strategy within South Africa, confirming its commitment to the local
market and facilitating job creation. The French maufacturer has very strong
ambitions for the SA market, Caussimon said, with the company already having
finalised its product line-up until the year 2005.
Cartoday.com reports that South Africa is one of Renault’s most important markets
outside Europe, achieving a 1.6 per cent share of the South African passenger
car market for 1999. The year to date however has seen the company’s market
share grow considerably to 5 per cent, according to the report.
