Springs & Bolts partners South African company to develop new business opportunities
The One District One Factory concept to create jobs and to improve livelihoods of the people in the districts initiated by the government is making major strides in the automobile industry.
A few of the manufacturing companies are getting international partnership primarily for business growth and international opportunities.
Notable among these companies in the Ashanti is the Springs & Bolts Company Limited located at Asokwa in Kumasi.
The Company has signed a groundbreaking Memorandum of Understanding, (MOU) with Supreme Spring a subsidiary of JSE listed company Metair recently in Nigel South Africa which has been endorsed by the African Association of Automotive Manufacturers (AAAM)
The signing of the MOU is a direct result of an exploratory visit in early March to Ghana by automotive component manufacturers hosted by AAAM.
The objective was to introduce potential investors to the Ghanaian automotive market focused on aftermarket opportunities, which in time will also support Original Equipment assembly as volumes grow. Currently almost all aftermarket components in Ghana are imported.
Supreme Spring based in Nigel South Africa is engaged in the designing, manufacture, marketing, and supply of quality heat-treated steel components such as leaf and coil springs, torsion and stabilizer bars to the local and international automotive market.
The Springs and Bolts Company Limited in Ghana manufactures leaf springs, U bolts, trailer axles and suspensions for the Ghanaian and other West African Free Zone aftermarkets exporting seventy percent and more of the finished goods and the remaining thirty percent for the local market.
Mark Barley the Managing Director of Supreme Spring and Derrick Asamoah Boahen the CEO of Springs and Bolts Limited signed the MOU at the premises of Supreme Spring during a visit by a team from Springs and Bolts Limited to familiarize themselves with the operations and possible areas of collaboration with Supreme Spring.
Mr Barley believes that the MOU is the beginning of a mutually beneficial relationship that would allow both parties to grow their business, with Supreme Spring sharing technical expertise and providing training of key skills, Springs and Bolts Company Limited will open new markets for Supreme Spring in West Africa”
He emphasized that during their recent visit to Ghana it became clear that the Ghanaian government is serious about developing Ghana into the Automotive hub for West Africa and they want to be a part of that growth by partnering with a local company.
Mr Derrick Asamoah Boahen, CEO of Springs and Bolts Company Limited on his part said their visit to Supreme Spring in South Africa confirms their view that they had found the ideal partner to help them develop and grow their business in Ghana and potentially expand it further to additional West African countries going into the future.
Mr Asamoah Boateng concluded that while they are currently focused on the aftermarket and seeing much growth potential in this area in the future, they are also excited that as they see OEM’s entering the market in Ghana that through their relationship with supreme Spring, they would be able to manufacture components in Ghana that meet the stringent quality standards that the major automotive vehicle manufacturers demand from their suppliers
David Coffey the CEO of AAAM on his part said seeing the first concrete outcome from their component supplier visit to Ghana in March through the signing of the MOU, is gratifying for AAAM as they continue to actively drive their vision to develop a viable automotive industry for Africa.
He congratulated both companies for not only seeing the opportunities of this collaboration but acting upon it so quickly.
Meanwhile second exploratory visit by component suppliers to Ghana is planned for the second half of this year.