Richards Bay’s aluminium sector is set for a major boost as South32’s Hillside Aluminium partners with the Automotive Industry Transformation Fund (AITF) and the Department of Trade, Industry and Competition (dtic) to channel approximately R200 million in concessional funding into Bingelela Alloys.
This investment marks a significant step toward strengthening South Africa’s automotive supply chain.
Bingelela Alloys, operating from the former Bayside Casthouse, specialises in converting liquid aluminium from Hillside into high-grade rim alloy. Its products power the wheels of leading manufacturers such as Maxion Wheels and Borbet, ultimately serving six of the country’s seven original equipment manufacturers, including automotive giants BMW and Toyota.
The funding will enable Bingelela to acquire two advanced furnaces and relocate its rim-alloy casting line within the casthouse. These upgrades aim to expand production capacity, improve efficiency and modernise operations.
Calvin Mkhabela, Hillside’s Vice President of Operations, emphasised the strategic importance of this initiative. As South Africa’s sole primary aluminium smelter, Hillside plays a pivotal role in supporting downstream industries by supplying competitively priced liquid metal. “This partnership is about more than Bingelela, it’s about unlocking broader aluminium value-add opportunities in Richards Bay,” Mkhabela noted.
Sipho Zikode, Chairman of Bingelela Alloys, hailed the collaboration as a model for public-private cooperation driving industrialisation. For Bingelela, the investment secures operational stability and sets a clear path for growth, reinforcing its position in the automotive value chain.
Government representatives echoed this sentiment. Tshepo Rapudi, Chief Investment Officer at AITF, highlighted the alignment with the fund’s mission to localise automotive components and promote beneficiation of critical minerals, particularly for new-energy vehicles. Mzwakhe Mbatha from the dtic added that the initiative supports the SA Automotive Masterplan 2035, which seeks deeper local value addition.
Founded in 2018, Bingelela Alloys stands out as a Black-owned and women-led enterprise, earning praise for advancing transformation goals such as job creation, import substitution and empowerment. Previous support from Hillside included interest-free loans and furnace leasing arrangements. With this new capital injection, Bingelela is poised to bring production fully in-house and transition to a more autonomous, long-term model.
Beyond Bingelela, Hillside is exploring additional downstream projects in Richards Bay, including a potential restart of aluminium rod production, a part of its broader strategy to strengthen South Africa’s aluminium value chain.
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