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South African auto parts group Jendamark braces for US tariff hit
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South African auto parts group Jendamark braces for US tariff hit
Aug 13, 2025 11:16 AM

By Nqobile Dludla

GQEBERHA, Aug 13 (Reuters) - South African auto parts

manufacturer Jendamark Automation stands to lose 750 million

($43 million) rand of contracts in a U.S. market it has built up

to account for 50% of its exports, its operations director told

Reuters.

The 40-year-old company based in coastal city Gqeberha

builds automated assembly lines for catalytic converters,

engines and axles for automotive customers such as BMW

and Mercedes-Benz among others.

But like global automakers and suppliers far and wide, they

have been hit hard by U.S. tariffs.

"As it stands now, we've got about 750 million rand of deals

with our American customers that (we're) at risk of losing,"

Siegfried Lokotsch said.

"I don't know if they're going to still buy the lines from

us. We thought we were going to get the orders, we were in a

good position ... In my mind, they're gone (the contracts)

because they've (the tariffs) just gone up."

About 85% of Jendamark's business in South Africa is for

export, with 50% of that to the U.S., where it also has an

office.

Jendamark is looking for new contracts in other markets,

such as Saudi Arabia, but the company has its work cut out to

replace the U.S. business it expects to lose.

"To find a new market and to understand how they operate in

the country and where the opportunities are is not something

that just happens overnight," he said.

($1 = 17.5018 rand)

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