R750m VSL plant strengthens Isuzu supply chain and fuels Eastern Cape automotive growth

VSL Manufacturing has officially opened its new R750 million manufacturing facility in Struandale, positioned alongside the Isuzu Motors South Africa (IMSAf) assembly plant.

The investment marks a significant boost for South Africa’s automotive value chain, the Eastern Cape’s industrial base, and the country’s efforts to grow black-owned manufacturing businesses.

The launch is the culmination of a long rebuild for a company that rose from the liquidation of Stateline Pressed Metal in Komani in 2018.

The closure left 123 people out of work, but two retrenched employees - Vuyo Skweyiya and Deon van Zyl - decided to revive the operation. With funding from ABSA, they acquired the defunct company’s equipment and launched VSL Manufacturing.

Today, it’s a 51% African female-owned company.

Trajectory changed

The turning point came in 2021 when IMSAf appointed VSL to its supplier development programme. The partnership allowed the company to build capacity, meet stringent OEM supply standards, and grow its revenue fivefold during the 2021/22 financial year.

But the rapid growth also exposed the limits of the ageing Komani press line. To ensure long-term sustainability and protect jobs, VSL and Isuzu developed an investment plan that was tabled before the Industrial Development Corporation (IDC), the Automotive Industry Transformation Fund (AITF) and the Black Industrialists Scheme (BIS).

The outcome was a combined R750 million capital injection. The IDC, AITF and BIS contributed to VSL’s ability to raise more than R300 million, while Isuzu invested R260 million. Property development funding added R130 million, and ABSA provided a further R20 million.

Skweyiya said the new factory represents “years of rebuilding, of restoring jobs, and of proving that South African suppliers can compete at the highest level of global automotive manufacturing.”

Neighbours with Isuzu

The location of the new facility, next to IMSAf’s Gqeberha plant, reduces logistics costs, improves production synchronisation and strengthens localisation in the Isuzu supply chain.

To date, it has already created 52 new jobs in Gqeberha, while the Komani operation continues to employ 66 people.

Skweyiya credited Isuzu for its practical support, noting that the OEM “did more than award a contract; they transferred tools, opened their supply chain to us, and worked closely to help us meet demanding global standards.”

IMSAf President Billy Tom highlighted the broader impact, saying the company is building “local capabilities that enable our operations here in Gqeberha to serve as an automotive manufacturing hub for the region.”

Stronger Eastern Cape

The new VSL Manufacturing facility opens ahead of full production for the 2026 financial year, supplying components for the Isuzu D-MAX.

Beyond supporting a single model, the investment reinforces the Eastern Cape’s standing as one of South Africa’s most important automotive hubs.