
Continental Compounders’ materials gain approval from auto OEMs
CONTINENTAL Engineering Compounds (CEC) has gained accreditation from several automotive Tier 1 manufacturers for the polypropylene and polyamide compounds it supplies to the OEMs (original equipment manufacturers).
The accreditations follow a nearly five-year strategic investment plan by the Durban-based manufacturer to supply to the South African automotive sector. Most if not all the PA and PP compounds used by automotive component manufacturers in SA had hitherto been imported, so the recent success is a clear case of CEC conquering the norm in this sector by supplying high quality, locally produced offerings that has gained approval.
Continental Engineering Compounds is a part of Continental Compounders, with the latter focused on PVC compounding in which they have had tremendous success over the years. It commenced with the manufacturing of highly specialised engineering compounds in 2016, from its inception base in Mariaan Industrial Estate in Durban. The company initiated its diversification into the automotive sector in 2019 and strategically made gains leading to their goal being achieved in 2024.
Part of the challenge in this sector is the extremely high standards that are required to be met in order to gain accreditation including compliance to all ISO quality standards and IATF certification (for the design, development, and manufacture of automotive-related products).Continental Engineering Compounds has achieved a monumental accomplishment by being the first and only local manufacturer to meet these standards to successfully gain accreditations. Continental’s investment plan into this sector also strongly aligns with the South African Automotive Masterplan(SAAM 2035) which drives automotive content localisation.
The OEMs also require confirmed guarantee of the ability for uninterrupted supply of large-volume orders and Continental has taken the strategic steps to ensure that this is met.
Increased output
It has since moved the engineering compounding plant to 72 Gillitts Road in Westmead, where it operates a from a considerably larger site, with some 7000m² under roof for the expanded plant. According to group managing director Darren van Rooyen, output capacity has steadily increased through the new installation of proven manufacturing machinery coupled with groundbreaking technology that has greatly improved operational efficiency.
Continental recently took a major stride forward with the commissioning of a higher volume compounding line from a US machine manufacturer which has enabled it to increase production substantially. These investments have resulted in the outputs of PP and PA compounds standing at an estimated 1000 tonnes per month. Plans are underway for the installation of a fourth compounding line which will further boost this output capacity and ensure continuous supply into the Automotive and Industrial sectors.
The plant possess the ability to compound high-concentration additive masterbatches in areas of UV resistance, flame retardancy and reinforcing abilities, which are among the vital performance areas that are required for automotive compound production.
The company has also expanded its on-site testing capabilities, with the lab in Westmead now being able to conduct a larger scope of testing that was previously done at offsite testing bureaus.
The company has been engaging with the major OEMs and are currently doing their due diligence into a second site close to an automotive manufacturing hub in the country. Continental Engineered compounds is fully committed to APDP plan for the localisation and its timeline targets , citing that localisation is key for the country and the industry.
PVC manufacturing
One of the highlights of the Continental journey, since its inception by founder George Dimond in 2005, was its newly established alliance with Capitalworks Investment Partners in 2023. Capitalworks is a private equity business that partners with South African entrepreneurs to stimulate growth of the economy. The investment by Capitalworks has assisted Continental to gain further momentum through capitalising projects such as the current expansion. The current management team led by CEO Dimond is poised to grow the business strategically and steadily into the future.
Continental’s PVC manufacturing portfolio has also seen some development with the relocation of some production machinery to the Westmead location, along with a R20 million investment for further upgrades to the facility. PVC compound manufacturing of rigid and flexible PVC as well as thermoplastic elastomer compounds, for convertors in both South Africa and abroad, will now be done through two production facilities . Output of Continental’s PVC grades stands at an estimated 55,000 tonnes per annum. The investment in production automation and bulk oil storage facilities ensures that the company is well positioned to meet local and export demand. Risk mitigation was also a key driver in setting up two production facilities to maintain continuous supply to the market.
In another development, Continental has supplied over 500 tons of recycled compound to key customers in 2024, as part of the company’s drive to operate sustainably within the PVC industry.
In 2023, Continental ventured into Europe by commissioning a new production facility in Portugal near Porto, which is strategically positioned to service the North African and European markets it serves.
“Continental Compounders is the largest polymer compounder in Sub-Saharan Africa and is positioned to remain the industry leaders for years to come,” said the group’s commercial director Keegan Govender.