YFPO pumps R1 billion into South Africa for BMW X3 production

Yanfeng Plastic Omnium (YFPO), a key partner of BMW, has announced a R1 billion investment in the country. The investment, set to create over 300 jobs, will primarily benefit the City of Tshwane, where YFPO plans to establish its operations.

YFPO, a global automotive component manufacturer headquartered in Shanghai, China, is known for producing a wide range of car parts, including interior features like seats and steering wheels and exterior elements such as bumpers and grilles. Formed in 2007 as a joint venture between Yanfeng Automotive Trim Systems and Plastic Omnium, YFPO now operates in more than 20 countries, employing nearly 50,000 people across 240 facilities worldwide.

A focus on localisation and sustainability

YFPO’s new South African facility will be responsible for producing painted plastic exterior components for the next-generation BMW X3, which is manufactured in Rosslyn, Pretoria. According to General Manager Jerry Ni, the company also plans to introduce advanced materials and environmentally friendly manufacturing processes for the new BMW X3.

“Following BMW’s award for localisation supply of the new G45 [BMW X3] platform, this project further solidifies the strategic collaboration between the two parties and achieves significant benefits in plant and production sustainability and digitalisation,” Ni said.

Ni also highlighted the company’s commitment to empowering local communities. “We will prioritise employing local youths, especially women, in managerial roles within our South African operations,” he noted, adding that YFPO is focused on skills transfer and training to ensure sustainable growth in the region.

The investment will also support the City of Tshwane’s environmental goals. YFPO plans to incorporate recyclable and sustainable materials in its production processes, alongside energy-efficient techniques, aligning with the city’s efforts to reduce its environmental footprint.

A milestone for Tshwane

The City of Tshwane has welcomed YFPO’s investment with open arms. Mash Moeketsi, the City of Tshwane’s Functional Head, praised the initiative, stating, “Given that the automotive industry supports Tshwane’s economy and contributes significantly to the GDP and employment, our coalition government welcomes this achievement.”

“The City of Tshwane is delighted to be part of this major milestone and trusts that more investments will come to Tshwane,” Moeketsi added.

This investment by YFPO not only strengthens its partnership with BMW but also marks a significant step towards bolstering South Africa’s automotive sector, with a strong emphasis on localisation, sustainability, and community empowerment.

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