Metair sees opportunities from COVID-19 outbreak

Metair, a leading car parts supplier and energy producer, recently reported a full-year revenue increase of 9.4 per cent to R11.2 billion. Despite the positive financial results, the company's CEO, Theo Loock, acknowledges the challenges presented by the ongoing COVID-19 pandemic. In an interview with CNBC Africa, Loock highlighted the company's response to the crisis, emphasizing the importance of prioritizing health and safety measures for employees, supporting government efforts to contain the virus, and adapting to the evolving business landscape. He expressed optimism about the future outlook for the business, citing a potential shift towards local manufacturing and supply chains as a key opportunity. The key theme of the interview centered around the impact of the COVID-19 outbreak on Metair's business operations and the strategies implemented to mitigate risks and capitalize on emerging opportunities. Three key points emerged from the discussion: 1. Response to the Crisis: Metair has been proactive in addressing the challenges posed by the pandemic, implementing measures to ensure the health and safety of its workforce, supporting government containment efforts, and adapting its business model to navigate the changing market conditions. The company's focus on maintaining operational continuity while prioritizing employee well-being reflects its commitment to weathering the current storm and positioning itself for long-term success. 2. Supply Chain Disruptions: The global automotive industry has been significantly impacted by supply chain disruptions, with major car producers announcing production shutdowns and potential delays. Despite these challenges, Metair has managed to secure contracts for new vehicle launches with key partners such as Mercedes Benz, Nissan, and VW. The CEO emphasized the fluid nature of vehicle launch timelines, noting that market conditions and consumer demand will play a crucial role in determining the pace and scope of these projects. 3. Shift towards Localization: As the pandemic underscores the vulnerabilities of global supply chains, Metair sees an opportunity in promoting local manufacturing and supply chain resilience. The company is exploring deeper localization initiatives in markets such as Turkey and South Africa, aiming to reduce dependence on imported inputs and strengthen its competitive position. By aligning its business model with the trend towards regional production networks, Metair aims to capitalize on the benefits of agility, responsiveness, and sustainability in the face of future crises. In his closing remarks, Theo Loock emphasized the need for collaboration between businesses and government entities to navigate the challenges posed by the pandemic effectively. By leveraging its resources, infrastructure, and expertise, Metair is committed to supporting national efforts to combat the virus and ensure the continuity of essential services. As Metair charts a course through the uncertainties brought about by the COVID-19 outbreak, the company remains focused on its strategic priorities, including innovation, sustainability, and stakeholder engagement. By staying agile and responsive to market dynamics, Metair is well-positioned to seize growth opportunities and drive value creation in the automotive and energy sectors.