Springs & Bolts Company Limited has signed a Memorandum of Understanding (MOU) with Supreme Spring for business growth and international opportunities in the automobile industry. Supreme Spring is a subsidiary of Johannesburg Stock Exchange listed company Metair, in Nigel, South Africa. The company has been endorsed by the African Association of Automotive Manufacturers (AAAM).
Supreme Spring engages in the designing, manufacture, marketing, and supply of quality heat-treated steel components such as leaf and coil springs, torsion and stabilizer bars to the local and international automotive market.
The objective is to introduce potential investors to the Ghanaian automotive sector, with a focus on aftermarket opportunities. In effect, to support original equipment assembly as volumes of aftermarket components increase. Almost all aftermarket components in Ghana are currently imported.
The Managing Director of Supreme Spring, Mark Barley and the CEO of Springs and Bolts Limited, Derrick Asamoah Boahen signed the MOU at the premises of Supreme Spring. The signing took place during a visit by a team from Springs and Bolts Limited to familiarize themselves with the operations and possible areas of collaboration with Supreme Spring.
Mr Barley believes that the MOU is the beginning of a mutually beneficial relationship that would allow both parties to grow their business. He said his outfit will share technical expertise and provide training of key skills. On the other hand, Springs and Bolts Company Limited will open new markets for Supreme Spring in West Africa, he stated.
He mentioned that during their recent visit to Ghana, it became clear that the Ghanaian government is serious about developing Ghana into a West African automotive hub. Thus, his outfit want to be a part of that growth by partnering with a local business, he intimated.
Potentials of the Automotive aftermarket industry
On his part, Mr Asamoah Boahen said his company sees significant growth potential in aftermarket industry in the future. Thus, his company currently focuses on the automotive aftermarket, he added. He expressed delight that his outfit has found the ideal partner to help them develop and grow their business in Ghana. Subsequently, to potentially expand its markets to other West African countries in the future.
Mr Asamoah Boahen explained that the new partnership with Supreme Spring would see original equipment manufacturers entering the Ghanaian market. As a result, his outfit would be able to manufacture components in Ghana that meet the stringent quality standards that the major automotive vehicle manufacturers demand from their suppliers.
According to David Coffey, CEO of AAAM, the signing of the MOU is the first concrete result of their component supplier’s visit to Ghana in March. He added that it is rewarding for AAAM as it continues to aggressively push the vision of developing a viable automotive industry for Africa.
Moreover, he congratulated both companies for not only seeing the opportunities of this collaboration but acting upon it so quickly. Meanwhile, second exploratory visit by component suppliers to Ghana is planned for the second half of this year.
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