w hat ’ s the B uzz ?
Metair Operational Update
The Group has experienced improved
stability in the Local Original Equipment
market since the cessation of labour
disruptions in July 2014.
In addition, Metair is pleased to advise
Shareholders that it has successfully
secured a number of Start-Stop related
OEM contracts.
Catch-up plans to recover volumes lost
during the strike have been introduced
by the Group’s OEM customers and are
progressing in line with expectations.
In Turkey, the Group secured a contract
to supply Renault with Enhanced
Flooded Battery Start-Stop batteries.
Shareholders are also advised that no
member of the Group has been implicated
with regards to or listed in connection
with the recently publicised investigation
by the Competition Commission of
alleged collusion within the South African
automotive component industry.
Although we cannot predict the course
that the Investigation will follow, it is our
understanding that the products produced
by the Group do not fall within the scope of
the Investigation.
Metair has also secured a contract to
supply Enhanced Flooded Batteries for
the first time to a major South African
OEM.
The Group has also entered into
an international brand distribution
agreement for the supply of Start-Stop
starter batteries.
Through this brand’s international
distribution network Metair will be able
to access a large portion of the central
European vehicle aftermarket.
In conclusion, Metair is confident
that we should be able to produce
and deliver quality cost-competitive
products to the South Automotive
Industry in a sustainable manner.
All industry stakeholders are cognisant
of the challenges they face and are
focused and committed to collectively
resolving these challenges.
The industry is further supported
by the South African Government’s
inclusion of the automotive industry
as a key industry in the Industrial
Policy Action Plan (IPAP) and by
the adoption of the Automotive
Production and Development
Programme (APDP).
Metair remains committed to
executing its strategy and achieving
it key performance criteria.