aBr November 2014 | Page 42

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.