VSL Manufacturing opens R750m to overhaul supply chain efficiency
The facility is scheduled to reach full production capacity in the 2026 financial year.;
VSL Manufacturing has officially launched a new R750 million purpose-built facility in Struandale, executing a strategic logistics move designed to synchronise operations directly with Isuzu Motors South Africa (IMSAf).
Situated adjacent to the Isuzu assembly plant, the new facility represents a shift toward hyper-localised supply chain management. By eliminating the geographic gap between supplier and original equipment manufacturer (OEM), VSL aims to cut logistics costs and enable real-time inventory synchronization.
The facility, which is scheduled to reach full production capacity in the 2026 financial year, is mandated to support the manufacturing of the Isuzu D-MAX.
According to the company press release, the site's proximity is the critical operational advantage. The setup allows for seamless integration with Isuzu’s production schedules, ensuring that components are delivered with Just-in-Time precision.
This integration is expected to drastically reduce transport overheads and streamline the flow of materials within the Eastern Cape’s automotive corridor.
VSL Manufacturing Director Vuyo Skweyiya said, "This facility represents the culmination of years of rebuilding, of restoring jobs, and of proving that South African suppliers can compete at the highest level of global automotive manufacturing".
The logistical integration was facilitated by a substantial R750 million investment strategy, drawing contributions from several key stakeholders. The funding breakdown is as follows: Isuzu Motors South Africa, R260 million; VSL (sourced through IDC, AITF, and BIS), approximately R300 million; Property Development, R130 million; the Automotive Industry Transformation Fund (AITF), R50 million; and Absa, R20 million.
While the primary focus is on production efficiency and logistics optimisation, the expansion has also yielded significant employment dividends. The new Gqeberha facility has created 52 new jobs to date.
Additionally, VSL’s operation in Komani continues to sustain 66 skilled employees, securing a vital base of technical expertise in the province.