Supreme Spring, a subsidiary of JSE listed company Metair Investments, has signed a ground-breaking MOU with Springs and Bolts Company Limited Ghana on 3 May.
The signing of the MOU is as a direct result of an exploratory visit in early March to Ghana by automotive component manufacturers hosted by AAAM – African Association of Automotive Manufacturers.
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.
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 stabiliser bars to the local and international automotive market.
“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,” added Barley.
“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,” said Derrick Asamoah Boahen, CEO of Springs and Bolts Company Limited.
“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,” he added.
“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. I would like to congratulate both companies for not only seeing the opportunities of this collaboration but acting upon it so quickly,” said David Coffey the CEO of AAAM.
A second exploratory visit by component suppliers to Ghana is planned for the second half of this year. The Springs and Bolt Company, based in Kumasi Ghana, manufactures leaf springs, U bolts, trailer axles and suspensions for the Ghanaian and other West African aftermarkets.