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KWAZULU-NATAL TOOLING INITIATIVE. Re-structuring of the South African Tool, Die and Mould-making Industry. Presented by: Umash Ramkalawon Regional Programme Manager KZNTI. Rehabilitation and growing of the Tool, Die & Mould-making Industry in South Africa. History of the TDM Sector in SA.
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KWAZULU-NATAL TOOLING INITIATIVE Re-structuring of the South African Tool, Die and Mould-making Industry Presented by:Umash RamkalawonRegional Programme Manager KZNTI
Rehabilitation and growing of the Tool, Die & Mould-making Industry in South Africa
History of the TDM Sector in SA Capacity (increasing importsfrom China and others) % Annual turnover Sector ratio 1% Automotive (7 OEMs) Mining & other BMW Toyota Nissan Volkswagen General Motors Mercedes Benz Ford Motor company 25% Loss In Local Tooling Manufacturing Capacity 80% 40% 35% 4,6% Packaging & consumer goods 1990 2010 Global EU SA
Economic Impact of the Tooling Sector in SA • The tooling sector can be classified as a sub-sector under the “Metal Fabrication, capital equipment and transport equipment” sector • High employment and growth multipliers • Strong backward linkages
Gauteng -Pretoria Kwazulu-Natal-Durban Western Cape-Cape Town Eastern Cape- Port Elizabeth Limpopo - Polokwane Mpuma-langa-Middleburg National Intervention in the TDM Sector • The Tooling Initiatives across SA is guided by the intervention programmes set by the National Tooling Initiative(NTI) which has been incorporated into the DTI’s Industrial Policy Action Plan – IPAP(2013- 2016) as a key action programme for Capital Equipment and Allied Services. Establishment of TDM Cluster Managementstructures in 6 provincial locations
KZNTI Strategic Concept SUSTAINABLE ECONOMIC GROWTH within the TDM SECTOR
KZNTI Intervention Projects TDM sector skills development Business capacity expansion Technology recapitalization Competitiveness improvement Cluster structure development Localisation of international tooling companies
TDM Sector Skills Development • TDM Powered Apprenticeship Programme • Pilot programme developed by industry experts and funded by the DTI • The future tooling qualification • 526 students at selected FET Colleges across the country • 65 students in KZN • Level 1 • 20 students in Pmb • Level 2 • 19 Students in Pmb • 26 Students in Dbn • Additional intake of 500 students for 2014
Business Capacity Expansion • Tooling Incentive Scheme • Recommended amendments to the current investment incentive structure of the Automotive Production and Development Programme (APDP) and the Automotive Investment Scheme(AIS) • AIS • Current capital investment incentive structure ranges from 20% to 30% • It is proposed that this incentive is offered to automotive tooling at a 50% standard rate • APDP • The light vehicle APDP offer's local value addition incentives in the form of a Production Incentive applied for via a Production Rebate Credit Certificate • It is proposed that for tooling local value addition, the benefits apply at the vulnerable products level to provide a significant boost to tooling localization.
….continued Rand value of imported automotive tooling used for calculations are as follows, • Historic average of R 2, 227 billion per annum • Forecasted value of R 4 billion per annum
Competitiveness Improvement • Business Development and Systems Training