VSL Manufacturing (VSL) has started operations at its new, R750-million manufacturing facility adjacent to the Isuzu Motors South Africa (IMSAf) assembly plant in Struandale, Gqeberha.

VSL is a majority black-owned South African component manufacturer specialising in advanced metal pressing and stamping products.

The component maker was established in 2018 and now operates facilities in both Komani and Gqeberha, in the Eastern Cape.

In Gqeberha, the company manufacturers skin panels for the Isuzu D-Max bakkie line – mainly exterior and structural stamped panels for the sixth-generation bakkie, says VSL director Vuyo Skweyiya.

“We are also certified to manufacture the same panel categories for the facelift seventh-generation D-Max, and for subsequent models as they are introduced.”

Current output for the sixth-generation programme is around 350 000 panels a year.

With the seventh-gen D-Max included, Skweyiya expects combined yearly volumes to peak at around 520 000 units by 2027.

“Daily output varies depending on Isuzu’s build schedule.”

Beyond the automotive industry, VSL also supplies components to the rail sector, most notably the Gibela Rail Consortium, which is responsible for building the new blue trains for the Passenger Rail Agency of South Africa.

“For rail clients, we manufacture pressed and fabricated metal parts used in rail-car assembly and structural applications,” explains Skweyiya.

“We’ll continue to diversify into sectors where our stamping, fabrication, welding and tooling-maintenance capabilities add value.”

She notes that it was no small feat to get VSL up and running, but that it has been well worth it.

“This facility represents the culmination of years of rebuilding, of restoring jobs, and of proving that South African suppliers can compete at the highest level of global automotive manufacturing.”

VSL was established following the liquidation of Stateline Pressed Metal in Komani, which resulted in 123 job losses.

Rather than accept defeat, retrenched employees Skweyiya and business partner Deon van Zyl secured funding from Absa Bank to acquire the company’s equipment and form VSL.

After rebuilding Stateline’s operations and capabilities, a major turning point came in 2021 when IMSAf appointed VSL to its supplier development programme.

This partnership enabled VSL to scale its operations, increase its revenue five-fold in the 2021/22 financial year, and meet the standards required for global vehicle manufacturing supply.

With growth came increased pressure, however, especially on the ageing Komani press line.

To safeguard jobs and ensure long-term competitiveness, VSL, supported by IMSAf, developed an investment plan which was presented to the Industrial Development Corporation, the Automotive Industry Transformation Fund, and the Black Industrialists Scheme.

This resulted in a R750-million capital mobilisation effort to establish the new facility, now located in Gqeberha.

To date, the expansion has created 52 new jobs in this part of the Eastern Cape, while the Komani operation continues to sustain 66 skilled employees.

VSL credits IMSAf for its hands-on supplier development support.

“Isuzu did more than award a contract. They transferred tools, opened their supply chain to us, and worked closely to help us meet demanding global standards,” notes Skweyiya.

Looking ahead, she says that VSL is eagerly anticipating the upcoming review of government’s Automotive Production and Development Programme (APDP).

“APDP 2 is vital to localisation and long-term industrialisation.

“From the review process, we would welcome strengthened incentives for [vehicle manufacturers] to deepen local value chains, increased support for supplier development, as well as measures that enable emerging and midtier suppliers to scale sustainably.

“These will improve competitiveness and secure long-term production mandates for South African component manufacturers.”

Skweyiya adds that VSL’s growth strategy includes expanding production capacity and positioning the company to supply additional vehicle manufacturers and Tier 1 components suppliers.

“Our new Gqeberha facility significantly enhances our technical capability and readiness to take on new programmes.

“We remain committed to localisation, job creation, skills development and contributing to the Eastern Cape’s manufacturing ecosystem.”