Car parts manufacturer Auto-Springs East Africa opens a new manufacturing plant in Limuru. The plant is set to create 600 additional jobs. The auto parts firm, which has moved its operations from Athi River to the new plant, already has about 200 employees on its payroll.
The newly opened Sh.500 million plant will be hiring both skilled and semi-skilled workers. The new jobs projection is, however, partly dependent on the government’s resolve in implementing a legal notice that requires car manufacturers to source more than a third of their inputs locally.
“If the government enforces Legal Notice 489 which requires automotive assemblers to have 40% local content in their vehicle assemblies, then we can increase our production to three shifts that would require a workforce of 800 persons,” said Kevin Kihara, the Auto-Springs East Africa board chairman. The company produces wiring harness, leaf springs, bolts and nuts and agricultural machinery.
According to the Economic Survey report, Kenya imported car parts and accessories worth Sh. 2 billion last year an increase from the Sh.1.7 billion purchased in 2016 but lower than the Sh.3.6 bn peak recorded in 2014.
Its current market stretches across East, Central and Southern African countries of Uganda, Tanzania, Zambia and the Democratic Republic of Congo. Among its biggest customers are Isuzu and Mitsubishi who order wiring harness for both buses and trucks. Toyota Kenya is also on its clients list.
Auto-Springs East Africa got funding for the expansion from Mauritius-based SME financier, SFC Finance.The expansion loan comes months after Ascent Rift Valley Fund, a private equity firm, acquired a majority stake in the company in February this year.
“We are trying to reduce the level of imports of goods that can be made by companies like ASL without compromising on quality,” said Industrialization secretary Adan Mohamed.
Mr. Mohamed said locally manufactured goods benefit local businesses, boosting the manufacturing sector’s contribution to the economy. The auto parts firm currently produces 150 tonnes of springs each month. It has set its eyes on hitting a monthly production of 450 tonnes, its maximum capacity. The says it is in advanced talks with Japanese manufacturer, Honda, to supply its local operations.
About Auto Springs East Africa (PLC)
Auto Springs East Africa (PLC) is Kenya’s largest original equipment manufacturer to the Kenyan motor vehicle assembly sector. Auto Springs was established in the year 1979 and has been producing a wide range of products for motor vehicles specifically leaf springs, nuts and bolts (centre bolts, U bolts, wheel studs, shackle pins etc.) and wiring harnesses for various models of commercial vehicles. In addition to the above, the company manufactures a wide range of agricultural equipment including sugar Mill components. It is also involved in a wide range of chassis reinforcements, extensions and modification of springs to make them suitable for Kenyan roads.
The factory is located in Limuru near the interchange of Kamandura Mai Mahiu Narok road and Eldoret Malaba road. The factory has modern and automated machinery to ensure quality and efficiency in production to meet the market demand. The factory has a strong technical team that is able to develop new products to meet the changes in technology in the motor vehicle industry. Our major customers in the assembly business are Isuzu East Africa, Simba Colt motors, Toyota Kenya and other industry players who distribute to garages and spare parts shops across the East Africa region.
