#NAACAMProud: The National Association of Automotive Component and Allied Manufacturers (NAACAM) has been working in strong collaboration with the Industrial Development Corporation (IDC) to support component manufacturers impacted by the closure of ArcelorMittal South Africa’s (AMSA) long steel division.
As an outcome of this work, IDC has established the Automotive Relief Fund (ARF). Qualifying companies are automotive component manufacturers in the value chain that will be directly affected by the closure of AMSA’s long steel business and funding is available from R1 million. The intention of the Fund is to provide working capital for automotive component manufacturers that have taken on additional stock from AMSA to secure their supply chains.
Commenting on the establishment of the ARF, NAACAM Head of Policy and Regulatory Affairs, Beth Dealtry noted, “Automotive component manufacturers stand to be heavily impacted by AMSA’s long steel winddown. NAACAM has worked closely with both impacted suppliers and IDC to support the creation of the ARF, which will play a critical role in reducing the immediate cash flow burden faced by component manufacturers and provide the short-term stability required to develop longer-term strategies that seek to strengthen the value chain and preserve auto-grade long steel manufacturing in South Africa. NAACAM is greatly appreciative of IDC’s support for and partnership with the domestic component manufacturing sector.”
Please note the following:
1) IDC due diligence process will still be conducted on each applicant, albeit an abridged version within the IDC policy and approval
2) Only Automotive Component Suppliers (value addition) that are impacted by the AMSA closure will qualify for the ARF
3) IDC reserves the right to request additional information over and above the information request in the ARF Guide
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