KAP-feltex
Investment in product expansion and partnering with new technology partner supports growth strategy.

Feltex Foam is a manufacturer and converter of polyurethane foam, predominately for the automotive industry.

In order to add value to its core product range, the business was vertically integrated to include PVC lamination of its converted foam products, which are used in vehicle interiors. Feltex’s foam products were previously only sold to third-party laminators before being sold onto the OEMs. This addition has therefore shortened the supply chain, allowing Feltex another direct product channel with the OEMs.

Following the expansion of the product range, the business will extend its relationship with key customers, being Ford SA and Toyota Boshoku SA, for the Ranger and Hilux models respectively, with further opportunities to increase penetration with other OEMs and export programmes.

In order to support this investment, Feltex Foam has entered into a partnership with Thainam Plastics Public Company Limited, a Thailand-based developer and manufacturer of PVC. Through its South African subsidiary, Thainam Vynide, PVC will be produced locally, providing Feltex the sole distribution right in the South African automotive market.

STRATEGIC DRIVERS

Industry diversification

Adding value through specialisation

IMPLEMENTATION

R5.1 million investment in infrastructure, international supply partnership and additional skills employment.

BENEFITS

Expanding the existing product range and optimising the supply chain with localised raw material (PVC) improved the division’s competitive advantage.

RESULTS

Expanded product range

Two new customers

Expected annual turnover from new process and product line: R38.5m

Under the TNV supply arrangement, Feltex Foam is the nominated agent for the supply and distribution of polyvinyl chloride (PVC) for the South African automotive market

20 additional direct jobs

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