Nicolette Dirk
SMMEs’ growth through the automotive sector was one of the main discussion areas at yesterday’s two-day South Africa-Italy Summit.
Paolo Olivero, CLN-MA Group’s country leader for South Africa, said although bigger companies were able to supply car parts, smaller companies often don’t have the skills and money to supply car parts in a competitive way.
The automotive division of the group focuses on producing and assembling steel structural parts, components, sub-assemblies and modules. The company has divisions in Italy, Europe, South America, Africa and Asia.
Olivero said there was a gap in the supply chain in South Africa, which smaller manufacturing companies can fill by producing car parts.
Olivero said the model being proposed focuses on integrating SMMEs into the automotive industry supply chain. The South African automobile sector contributes 5.1 percent to the GDP.
Olivero said instead of South Africa’s automobile sector paying extra to import parts from other countries, a collaborative initiative with the two countries would allow parts to be produced locally and create more jobs.