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      03-23-2012, 10:08 AM   #1
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First National Battery South Africa to produce Hybrid 3 Series battery

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FIRST National Battery, a subsidiary of JSE-listed Metair , announced yesterday that it would supply the specialised battery needed in the production of the new hybrid BMW 3 Series.

This, along with the acquisition last week of a Romanian battery producer, means that the group is set to significantly expand its battery production.

First National Battery was "the only producer of this technology in the southern hemisphere," Metair CEO Theo Loock said.

While production was directed at cars produced for export, the group was prepared for local demand expected in the future.

"A huge amount of money has been invested into the technology over the last 20 years," he said.

Mr Loock said that the company had focus ed on applying the technology — previously used in mining — to the automotive sector over the past six years.

"A once-off fresh investment now into this industry would cost between R160m and R200m ," he said.

Last week, Metair announced that it had acquired Rombat, a Romanian battery manufacturer.

Mr Loock said the group was "extremely comfortable" in the battery industry and said that the acquisition of Rombat had doubled its manufacturing capacity from 2,4-million batteries a year to 5-million batteries a year.

Mr Loock said Metair aimed to transfer its technologies to Rombat to ensure better access to the European hybrid car industry, which was where these cars were produced and where the demand for such technologies existed.

Louis Denner, MD of First National Battery, said: "We are very proud to supply BMW with the first Valve Regulated Lead Acid batteries for original equipment manufacture, as well as parts and accessories manufactured in SA.

"The first of these batteries will be installed in the BMW 3 Series from early April."

The BMW 3 Series is one of the first ranges of vehicles with full start-stop technology to be produced in SA. Vehicles with start-stop technology have engines that switch off automatically when stopping in traffic, reducing idling time.

"It is a more efficient system which reduces fuel usage," Mr Loock said. As the world took more steps to reduce carbon footprints, the technology was increasingly in demand, he said.

First National Battery suffered a blow last year when a fire destroyed part of its factory in Benoni, which accounted for half of the company’s battery formation capacity.

Mr Loock said, however, that this amounted to "constructive destruction" as the East London factory now handled production.

The Benoni branch now acted as a major distribution hub for the company, he said.

The recent completion of new facilities meant that full production is "back on track" and a consolidation of logistics had placed the company in a better position, Mr Loock said.
www.battery.co.za
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