East London - Mercedes-Benz South Africa (MBSA) and the National Treasury, through its Jobs Fund, have formed a partnership in a new job creation initiative that will result in the construction of a new R130 million learning academy in East London.
The partnership has been formalised through the signing of a grant agreement with the investment, co-funded equally by the Jobs Fund and MBSA, used to transform MBSA’s existing technical centre at its plant into a learning academy.
The academy will seek to address the training demands of the plant and many other local industries, including the automotive component sector, and train unemployed youth.
Arno van der Merwe, the chief executive and executive director manufacturing at MBSA, said yesterday that the future of the motor industry was hedged on its capability to integrate and assimilate new technologies into its operations because building a motor car would increasingly become more advanced.
“If the ability of the industry and the country in terms of its investment in technology and the associated skills to run that technology falls significantly behind another part of the world, we will find ourselves… completely marginalised. So it’s critical to invest in technology skills,” he said.
Van der Merwe said every time an automotive manufacturer made an investment in a new product, it was making a seven- to eight-year commitment of millions of rand that was dependent on the capability of the people to run that production facility. Investing in hi-tech training facilities that had the best equipment and the capability to train the best skills was, therefore, critical.
The academy will house the most advanced robotics and join technology cells available in South Africa and the world. The number of trades that could be facilitated will increase to include all the major trades, such as automotive electrician, electrician, millwright, fitter and turner, motor mechanic and mechatronic engineer.
Construction of the academy commenced in August and it is scheduled to open in or around September.
MBSA achieved record sales growth last year and is targeting record production growth this year, despite the risks posed by Eskom’s load shedding.
Van der Merwe said MBSA’s car division grew sales by 25.3 percent to 28 370 units last year to achieve the top spot in the premium luxury segment.
Production output at the plant will double this year compared with 2013, and a third and permanent night shift has been added. About 85 percent of the plant’s production is exported.
MBSA reported 5 percent growth in revenue to R45.32 billion from R43.13bn in 2013.
Earnings before interest and tax declined to R3.08bn from R3.54bn in 2013.