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METAIR INVESTMENTS LIMITED - Operational update

Release Date: 20/10/2014 12:50
Code(s): MTA     PDF:  
Wrap Text
Operational update

Metair Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1948/031013/06
Share code: MTA
ISIN: ZAE000090692
(“Metair” or “the Group”, including any subsidiaries of Metair)



OPERATIONAL UPDATE

This serves as a general communication to Metair shareholders (“Shareholders”) with regard to:
    1. the status of the local automotive industry’s business environment;
    2. the recently publicised investigation by the Competition Commission of alleged collusion
        within the South African automotive component industry (“the Investigation”); and
    3. the award of new Start-Stop battery supply contracts to the Group in South Africa and
        Turkey.

Business environment

The Group has experienced improved stability in the Local Original Equipment market since the
cessation of labour disruptions in July 2014.Catch-up plans to recover volumes lost during the strike
have been introduced by the Group’s OEM customers and are progressing in line with expectations.

The Investigation

Shareholders are advised that no member of the Group has been implicated with regards to or listed
in connection with the Investigation. Although we cannot predict the course that the Investigation
will follow, it is our understanding that the products produced by the Group do not fall within the
scope of the Investigation.

Start-Stop tenders

Metair is pleased to advise Shareholders that it has successfully secured a number of Start-Stop
related OEM contracts. In Turkey, the Group secured a contract to supply Renault with Enhanced
Flooded Battery Start-Stop batteries. Metair has also secured a contract to supply Enhanced Flooded
Batteries for the first time to a major South African OEM.

The Group has also entered into an international brand distribution agreement for the supply of
Start-Stop starter batteries. Through this brand’s international distribution network Metair will be
able to access a large portion of the central European vehicle aftermarket.

Conclusion

Metair is confident that we should be able to produce and deliver quality cost-competitive products
to the South Automotive Industry in a sustainable manner. All industry stakeholders are cognisant
of the challenges they face and are focused and committed to collectively resolving these challenges.
The industry is further supported by the South African Government’s inclusion of the automotive
industry as a key industry in the Industrial Policy Action Plan (IPAP) and by the adoption of the
Automotive Production and Development Programme (APDP). Metair remains committed to
executing its strategy and achieving it key performance criteria.


Johannesburg

20 October 2014

Sponsor

One Capital

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