R200 million in funding to be made available.
Hillside Aluminium (Hillside) has partnered with the Automotive Industry Transformation Fund (AITF) and the Department of Trade, Industry and Competition to strengthen downstream aluminium manufacturing in South Africa. Together, the partners are providing around R200 million in concessional financing to support Bingelela Alloys’ continued production of rim alloys in Richards Bay.
Hillside supplies Bingelela Alloys with liquid aluminium, which is manufactured into a rim alloy product at its semi-fabrication facility at the former Bayside Casthouse, supporting local jobs and downstream industry growth.
The product produced by Bingelela Alloys is supplied to Maxion Wheels and Borbet and ultimately reaches six out of the seven local original-equipment manufacturers in South Africa, including BMW and Toyota.
The financing will enable Bingelela Alloys to buy two new furnaces and relocate the rim alloy casting line within the Casthouse, improving production and supporting the sustainability of South Africa’s downstream aluminium sector.
Hillside Aluminium Vice President Operations Calvin Mkhabela said the partnership demonstrates South32’s commitment to supporting local industry.
“Hillside is proud to support Bingelela Alloys. Its rim alloy products are supplied to some of the world’s largest and prestigious automotive manufacturers after further processing,” Calvin said.
“As the only producer of primary aluminium in South Africa, downstream manufacturers like Bingelela Alloys depend on the liquid aluminium supplied by Hillside on competitive terms, to support the growth of the local industry and create local jobs in the Richards Bay area.
“We will continue to help South Africa’s downstream aluminium industry to grow and to play a leading role in accelerating its development.”
Bingelela Alloys Chief Executive Officer Sizwe Khumalo said the collaboration highlights what can be achieved when industry and government work together.
“This partnership is a prime example of how targeted, strategic collaboration between the private sector and government can drive industrialisation. It demonstrates a shared vision for achieving high industrial growth and fostering economic prosperity.
South32 continues to assess a pipeline of opportunities to support the growth of the downstream aluminium industry in Richards Bay, helping develop local capability and creating lasting benefits for the region.
“The DTIC will continue to support the development of automotive component manufacturing companies such as Bingelela. This is through the South African Automotive Masterplan 2035, whose key objective is to deepen local value addition and reach 60% by 2035,” says DTIC policy analyst Mzwakhe Mbatha.
The South32 Hillside Aluminium smelter is located on the north coast of KwaZulu-Natal in the city of Richards Bay. Hillside Aluminium is the largest aluminium smelter in the southern hemisphere.
