If loadshedding persists in levels five or six, Volkswagen South Africa (VWSA) could lose up to a quarter of the units it had projected to produce this year.
This was part of the presentation given to the Minister in the Presidency responsible for Electricity, Dr Kgosientsho Ramokgopa by VWSA Managing Director Martina Biene.
Ramokgopa was in Gqeberha on Friday, visiting original equipment manufacturers like VW and Isuzu as part of his continuous engagements with the Automotive Industry on their challenges caused by the current electricity crisis, and possible short to medium-term solutions.
Biene says the German manufacturing giant has already lost 4000 units this year alone because of the rampant power cuts.
She says if the loadshedding scenario continues, the plant could lose up to 33 000 units against the 161 000 maximum units that they produce annually.
“We have negotiated with the Nelson Mandela Municipality to be on a 24-hour loadshedding- which will save us some loss in units during the ramp down and ramp up of production.
She says during loadshedding Stage Five, they will be forced to close one day out of eight days while they would have to shut the plant for two days during Stage Six.
“We will send approximately 2 000 people home a day, and we won’t pay them wages.”
“In general, this situation is not ideal for us,” she added.
She says while they have invested in sustainable solutions like solar and wind power- that is still in the future.
Minister Ramokgopa says that engagements are ongoing with the manufacturers in order to ensure they remain productive.
He says his visit is to ensure that they protect jobs, economies and businesses in the crisis so that export capacities are not undermined.
“The last thing we want on the back of load shedding there are investment decisions that are taken by headquarters of these OEMs to relocate production elsewhere or the next generation of these vehicles to other jurisdictions.
“We have built this capacity over a long time, and therefore we are going to jealously guard it,” Ramokgopa said.
On Nelson Mandela Bay, Ramokgopa, says that the national government will work with the municipality on funding the 44 mega-watt gas turbine that will benefit the economy.
Bay Mayor, Retief Odendaal says 65-70% of electricity consumption is done by big industry especially the motor industry which contributes 44% of the GDP of the municipality.
Odendaal says engagements with the ministry and Eskom will continue with vigour to make the loadshedding burden easier on residents and businesses.
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