“In South Africa’s automotive sector, one can look at the problems and challenges, or one can see opportunity. We prefer opportunity – but that is not just going to arrive through the front door. We know that we need to create it,” says tier 1 automotive component manufacturer Malben Engineering’s Commercial Director, Marius Schafer.
Following the August National Association of Automotive Component and Allied Manufacturers (NAACAM) expo - where the company showcased its automotive component manufacturing capabilities, and networked with a diverse group of industry peers, stakeholders and Original Equipment Manufacturers (OEMs) - Schafer advises that common focal areas and concerns were discussed at this very well-organised event, including industrial transformation in the local automotive sector and the value of innovation and collaboration.
Driving innovation
“As a company that manufactures complex assemblies and also has a stronghold in the e-coating space, the Malben Engineering stand and presence garnered substantial interest. We demonstrated that we are not only a proudly local manufacturer of high-quality, safety-critical automotive components - but a pivotal part of the larger industrial ecosystem,” Schafer comments, adding that the company video – newly launched at the expo - also showcased its passion for excellence, innovation and sustainability: “For Malben, this is all about effectively positioning ourselves for the future,” he explains.
The event was attended by high-ranking government representatives - including Deputy President Paul Mashatile and Minister of Trade Industry and Competition, Parks Tau - who recognised Malben Engineering in his speech for its sustainability achievements, including being the first local automotive component manufacturer to trial the use of green steel, for which it also won the 2024 SEIFSA environmental award.
Driving localisation
Localisation – both of raw materials and manufacturing components from imported raw materials - was a major focus of the expo, with one of the most widely discussed topics being China’s impact on the local market.
During a recent automotive industry conference in Algeria, Schafer says that the challenge of making a car - in Africa, for Africa - was raised: “However, to make this realistically viable, it was agreed that stability at policy level is needed - by all the various industry stakeholders,” he explains.
Policy cannot change every time a government does. This business is built on a 20-year cycle. Companies will not invest in presses, tools and machinery if there is the risk of constant change. An automotive manufacturing business has to be there for the long haul!” Schafer advises.
To this point Malben, Malben Engineering’s 50-year plus track record serves as an important foundation: “In this sector, solid, sustainable businesses are essential – managed by people who are experienced and understand the automotive industry.
This is vital – as the impact of what we do goes way beyond the actual automotive parts being made.”
Further to this point, Schafer believes that the local automotive industry must think more broadly: “China is leading the way globally. We must think differently to compete effectively. We cannot rely on tariffs on imported vehicles, we need to change how we do business!
This approach is driving a lot of our thinking as a business when it comes to collaboration, joint ventures and strategic partnerships - as the only way to create a sustainable competitive edge.”
Driving collaboration
“At Malben, we are passionate about excellence - and how we can industrialise locally and competitively - transforming into a multinational via collaboration with a wide variety of sector role players: the OEMs, our peers, steel mills, steel service centres and more. For the automotive industry to successfully navigate the pressures it is encountering right now, we have to look at all the elements which we can bring together.”
He points out that Malben is actively involved in various sector forums, in order to influence improvement or positive industry change: “For us to protect and grow our market - as well as the entire automotive sector – we know that we need to be proactive and innovative. It is the only way for the sector to be sustainable.”
Value of NAACAM membership
Schafer says that for a company such as Malben Engineering, NAACAM membership provides an invaluable platform through which to promote its business, and connect with decision-makers – as well as current and prospective clients: “Through our NAACAM membership – and initiatives such as their expo - Malben can provide inputs into future strategic direction and policy-making – as well as meeting new players in the market.
We can take part in industry surveys, and access key industry findings more quickly – informing internal decision-making such as when key ‘pivots' or strategic changes are required.
In summary, as NAACAM members, we can play our role as an active and proactive participant - and driver - within the local automotive component manufacturing sector,” Schafer concludes.