East London, 6 September 2007
Programme Director,
Minister of Trade and Industry, Mandisi Mpahlwa,
Cabinet Ministers,
Premier of the Eastern Cape, Nosimo Balindlela,
Prof Schrempp,
Chairperson of Daimler Chrysler SA, Dr. Niefer,
The COO, Mr. Rainer Schmueckle,
Comrades workers and trade union leaders,
Distinguished guests,
Ladies and gentlemen:
I am honoured to be part of this official opening of the new plant for the production of Mercedes Benz W 204 C-Class series, held in the city of East London, one of the important economic nodes in our country which is now famous for its manufacture of top class vehicles.
Let me take this opportunity to congratulate Daimler Chrysler for investing in this region and in particular, in the city of East London.
Today's event also signifies the important partnership that exists between business and government and the role that business is playing in the economic development of our country.
We are glad that Daimler Chrysler understands and is committed to this partnership and plays a critical role in the social and economic life of our country.
The automotive industry is one of the key growth sectors that have contributed to the overall economic growth of South Africa. With its 7.53% contribution to the country's Gross Domestic Product (GDP) in 2006, it is self-evident that this sector will play significant role in ensuring that South Africa achieves the higher rates of economic growth we need.
Indeed, Daimler Chrysler has been part of the process of ensuring that this region becomes a major manufacturing industry, especially through increased investment as well as skills development.
The Mercedes Benz C Class model produced here has become a symbol of reliability the world over and all South Africans are proud that the vehicle of such high quality is the product of their labour.
I am told that those who drive the Mercedes Benz C Class model say it is a luxury car that exudes real class, and in terms of class and character is up there with the very best on the international stage.
I have no reason not to believe them because the class and elegance that this vehicle represents are the qualities that communicate a message that we are capable, as South Africans, to produce products of the highest quality.
The fact that this car has been assembled here in our country gives us South Africans reason to be proud. We are even more proud of the fact that the final products from this site will be distributed to different parts of the world, which will certainly redound to our reputation as an internationally competitive nation.
We are indeed very happy that Daimler Chrysler is committed to investing in South Africa. We are of the further view that as a company you have also seen the benefits of investing in our country and you will continue to do so well into the future. We are confident that we remain partners for the benefit of all our people and for our economic development.
As a country, we are proud of the quality of products that have been developed from this plant and we are confident that they are some of the best in the international markets.
As we know, increased investment not only contributes to the objectives of growth and development which our government seeks to achieve. It also creates employment opportunities and thus contributes to poverty eradication.
The shortage of skills remains a big challenge for all of us.
To this end, government, together with the private sector and the universities, have put in place a comprehensive plan that should help us build the necessary skills-base in all critical areas needed by our economy.
Through the Joint Initiative on Priority Skills Acquisition (JIPSA) we are all committed to fast-track the process of skilling the South African workforce for faster economic growth and social development.
We are of course making other interventions in the area of education and training to address the skills constraint in our economy and society.
In this context we welcome the investment that Daimler Chrysler has made towards skills development by investing monies in skills training and development and improving the skills of your employees so that they will be relevant for the 21st Century challenges that face the industry and the country.
I am also told that you have invested about R 1.9 billion on improving your infrastructure, constructing new buildings, developing your technologies and investing in new tools as well as new state of the art equipment. I believe you are also working hard in ensuring that your workplace is safe for your employees.
I am aware that the role of Daimler Chrysler South Africa also does not just end at running a profitable business enterprise in an effective and productive manner, but that you are also playing an important Corporate Social Investor, by ensuring that you support social investment in your immediate community through your initiatives in education and health.
We look forward to the continuation of the healthy and mutually beneficial relationship between ourselves as government and the private sector as demonstrated by Daimler Chrysler. This relationship underlines the importance of private-public-partnerships that must be strengthened and nurtured.
Chairperson,
Government has since 2005 been reviewing the Motor Industry Development Programme (MIDP).
As you know, one of the objectives of this review has been to evaluate the performance of the industry against the MIDP's stated objectives, i.e. making vehicles more affordable, growing exports, rationalising production platforms and stabilising and growing employment.
At the same time, the thrust of this review is to ensure that our automotive industry remains globally competitive and is integrated into the global value chain.
I am aware of the fact that you, like the rest of the automobile industry, are concerned that we should complete this review as soon as possible. Our government is completely at one with you in this regard.
As you know, our Minister of Trade and Industry who is here with us, has publicly indicated that we are determined to complete, by December, the process to outline a support programme for the industry to be implemented after the current MIDP expires in 2012.
It is clear that in determining the level of support, the future programme will have to respond to the needs of the industry with regard to competitiveness, localisation and transformation.
We will arrivŲ at these decisions after comprehensive and sustained discussions that we are undertaking with the automobile industry as a whole.
Earlier I said that it is self-evident that the automobile sector will play significant role in ensuring that South Africa achieves the higher rates of economic growth we need. Let me go beyond this. Our government has formally taken the decision that in terms of our industrial policy, about which I will make some remarks shortly, we must encourage and support the automobile sector as one of the leaders in our process of radical expansion of our manufacturing sector.
I say this to confirm that we are as keenly interested as you are to resolve all matters that relate to the MIDP as quickly as possible. But I must also say that in this regard, together we must ensure that we do not expose ourselves to any challenges in terms of WTO rules and agreements.
Our government will therefore honour its obligation consistently to engage all our relevant social partners to produce an agreement that meets our common desire to ensure the further and rapid expansion of the automobile sector.
Chairperson,
The economic restructuring that is taking place currently in South Africa through the introduction of the National Industrial Policy Framework seeks to respond to various economic and industrial policy imperatives. It also seeks to address a weakness that exists in our economy, which, among other things, has resulted in the current balance of payments deficit.
Part of our vision of the National Industrial Policy Framework (NIPF), is to have an industrialisation trajectory that is responsive to:
We are determined to pursue all these objectives, which are an integral part of ASGISA. We know that in this regard we have no choice but to succeed. This is because our Industrial Policy Framework and its Action Plan are critically important to the acceleration of our sustained advance towards overcoming the challenge of unemployment and poverty, and creating a better life for all our people.
I am indeed very pleased to be here today to join the management and workers at this important plant as we, together, officially commission the additional production capacity that has enabled Daimler Chrysler South Africa to expand its output and export to new markets, especially the United States.
We are proud to have you as one of our leading corporate citizens and assure you of the commitment of our government to work with you as we, again together and in partnership, continue to respond to the challenge of building a winning nation.
I am privileged to wish Daimler Chrysler South Africa success as it grows from strength to strength, driven by the determination to succeed and confidence in our country represented by the new and additional investment we celebrate today.
Thank you.