Automotive deal harnesses massive impact for the automotive sector, the KZN province and economy at large
05 Jul 2021
Hesto Harnesses is creating at least 3500 new jobs in KwaDukuza, Northern Kwazulu-Natal, due to a deal concluded with a major Original Equipment Manufacturers (OEMs) to manufacture their wiring harnesses.
A subsidiary of the Metair Group, Hesto Harnesses are a leading tier 1 supplier of wiring harnesses to the OEMs in South Africa and are the single largest employer in KwaDukuza with an existing staff base of 3000. Many of the new jobs created will be allocated to females in the community.
We provided Hesto Harnesses with a ZAR850m term loan and Revolving Credit Facility, to support their capital expenditure and working capital funding requirements, on the back of a large contract secured with a major OEM. The funding was structured with flexibility to accommodate their build program and production ramp-up in line with their contractual requirements.
The investment brings a much-needed boost to the manufacturing sector and the enhancements and technology upgrades will allow the industry to evolve and create efficiencies.
Debbie Botha – Manager Client Coverage, Industrials.
This deal also affirms South Africa as a prominent manufacturing destination for the global automotive investment community. South Africa’s strong policy supported by the SA Automotive Master Plan offers Global OEMs an attractive investment opportunity.
Investments like this, backed by a supportive regulatory framework and an efficient and inclusive supply chain, can be a powerful catalyst for the recovery of the country’s broader manufacturing and export capacity.