South32’s Hillside Aluminium has reached a significant financing partnership with the Automotive Industry Transformation Fund (AITF) and the Department of Trade, Industry and Competition (the dtic) to inject around R200 million in concessional funding into Bingelela Alloys, a rim-alloy manufacturer in Richards Bay, KwaZulu-Natal.
Bingelela Alloys, which converts liquid aluminium from Hillside into premium rim alloy, is based at the former Bayside Casthouse. Its product is used by leading local wheel manufacturers such as Maxion Wheels and Borbet, and ultimately reaches six of South Africa’s seven original-equipment vehicle manufacturers, including BMW and Toyota.
The new funding will support Bingelela’s purchase of two new furnaces and the relocation of its rim-alloy casting line within the casthouse, strengthening its production capacity and modernising its operations.
Calvin Mkhabela, Vice President of Operations for Hillside, highlighted the importance of this step: as the country’s only primary aluminium smelter, Hillside is uniquely positioned to underpin a downstream aluminium industry by supplying competitively priced liquid metal. He said the company is committed to helping the local semi-fabrication sector expand — not just to support Bingelela, but also to explore further aluminium value-addition opportunities in Richards Bay.
Sipho Zikode, Chairman of Bingelela Alloys, praised the deal as a “prime example” of how coordinated government-private sector funding can drive industrialisation. For Bingelela, the investment means more stable capacity and a clearer roadmap for growth — reinforcing its role in South Africa’s automotive value chain.
On the government side, Tshepo Rapudi, Chief Investment Officer of the AITF, said the fund is proud to back the initiative: it aligns with its core mission to promote localization of automotive components and beneficiation of critical minerals, especially for new-energy vehicles. Mzwakhe Mbatha, a policy analyst at the dtic, added that the support underscores the Department’s commitment to the SA Automotive Masterplan 2035, which targets deeper local value-adding in the sector.
Bingelela Alloys has long been a flagship for industrial transformation. Established in 2018, it is majority owned by Black economic empowerment stakeholders, especially Black women. The company has been praised by the dtic and industry observers for ticking many of the Masterplan’s boxes — from import substitution to job creation, localization, and empowerment.
Previously, Hillside supported Bingelela with concessional and interest-free loans to help with working capital and furnace leasing arrangements. Now, with the new capital injection, Bingelela will be better equipped to bring production fully in-house and transition from leased capacity to a more autonomous, long-term setup.
Beyond Bingelela, the move is also part of Hillside’s broader industrialisation strategy. According to the company’s latest reporting, it is evaluating additional downstream projects at Richards Bay — including a restart of aluminium rod production — aimed at deepening the country’s aluminium value chain.
