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Supreme Spring, a subsidiary of JSE listed company, Metair, has signed a new deal with Springs and Bolts Company Limited Ghana. The Memorandum of Understanding to develop new business opportunities between the two companies was signed Monday, 3 May, in Nigel, South Africa.
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 based in Kumasi, Ghana manufactures leaf springs, U bolts, trailer axles and suspensions for the Ghanaian and other West African aftermarkets.
Managing Director of Supreme Spring, Mark Barley and the CEO of Springs and Bolts Limited, Derrick Asamoah Boahen, signed the MOU at the premises of Supreme Spring during a visit by a team from Springs and Bolts Limited to familiarise themselves with the operations and possible areas of collaboration with Supreme Spring.
“We believe that this MOU is the beginning of a mutually beneficial relationship that will 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” said Mark Barley the Managing Director of Supreme Spring.
“During our recent visit to Ghana it became clear that the Ghanaian government is serious about developing Ghana into the Automotive hub for West Africa and we want to be a part of that growth by partnering with a local company.”
Responding in a remark, the CEO of Springs and Bolts Company Limited, Asamoah Boahen, said: “Our visit to Supreme Spring confirmed our view that we have found the ideal partner to help us develop and grow our business in Ghana and potentially expand it further to additional West African countries going forward.
“Whilst we are currently focused on the aftermarket and see much growth potential in this area in the future, we are also excited that as we see OEM’s entering the market in Ghana that through our relationship with supreme Spring, we will be able to manufacture components in Ghana that meet the stringent quality standards that the major automotive vehicle manufacturers demand from their suppliers.”
Meanwhile, the African Association of Automotive Manufacturers (AAAM) has welcomed the signing of the groundbreaking MOU between the automotive companies as the signing of the MOU was the 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 OE assembly as volumes grow. Currently, almost all aftermarket components in Ghana are imported.
“Seeing the first concrete outcome from our component supplier visit to Ghana in March through the signing of this MOU, is gratifying for AAAM as we continue to actively drive our vision to develop a viable automotive industry for Africa, ” the CEO of AAAM, David Coffey, said, adding, ” I would like to congratulate both companies for not only seeing the opportunities of this collaboration but acting upon it so quickly.”
Meanwhile, a second exploratory visit by component suppliers to Ghana is planned for the second half of this year.
