The Department of Trade, Industry and Competition (dtic) has welcomed the forthcoming launch of a strategic partnership between train technology company Wabtec South Africa and railway wheels manufacturer Lucchini South Africa (LSA), marking what it has called a significant milestone in the country’s rail manufacturing sector.

The official launch will take place in Johannesburg on November 7.

Through a joint investment of about R47-million, Wabtec and LSA have acquired a state-of-the-art computer numerical control (CNC) machining system to support local railway wheel production.

This investment is a key step towards the localisation of the wheel machining process, which has historically been outsourced abroad. Bringing this capability in-house will enhance the efficiency and competitiveness of South Africa’s railway manufacturing value chain.

dtic sectors branch deputy director-general Dr Tebogo Makube says the investment is a demonstration of confidence in South Africa’s industrial capabilities and transformation agenda.

“This partnership between Wabtec and LSA is a clear example of how international collaboration and local enterprise can work hand in hand to strengthen domestic manufacturing.

“The introduction of advanced CNC machining technology will not only reduce production costs and improve quality but also enable South Africa to build local capacity, replace imports with locally produced components, and gain access to new export markets through globally competitive manufacturing standards,” he says.

Makube adds that the installation of the CNC system will reduce costs, mitigate poor quality, improve lead times and ensure higher product precision.

Furthermore, it will support import substitution, industrial deepening, and the transfer of advanced technical skills to the local workforce and all critical priorities under South Africa’s reindustrialisation agenda.

“The project forms part of the National Industrial Participation Programme, as a result of Wabtec’s supply of rail goods to Transnet, through which foreign investment obligations are channelled to enhance local productive capacity,” he says.

LSA MD Gcobisa Bokleni-Toyi says the collaboration with Wabtec and the dtic is a commercial success and a driver of national economic growth and industrial inclusion.

“This investment will give LSA a true competitive edge, improve quality, reduce lead times, and position us to trade globally while building local capability and creating jobs,” she says.

She adds that the partnership with Wabtec and the dtic has created significant opportunities for LSA. Beyond its commercial benefits, it has introduced advanced technical skills, supported staff training, and contributed to job creation within the business.