ANOTHER CASUALTY OF POLITICAL FOLLY

THEN... Glossy brochures, a thriving factory and workforce and the came the end to sanctions.....   Now that Atlantis Diesel Engines (ADE) is no more, has anyone given a thought to the workforce who helped make it happen and who contributed to the profits generated for the government, shareholders and the transport industry in general? It seems that, like returning soldiers who are considered heroes while the war is on but are soon forgotten once it's over, the former heroes of ADE have also been forgotten. This is the conclusion of our Cape correspondent, Stephanie Platt, after a visit to the once famous area that played host to the engine house of the South African trucking, military and agricultural industries. It's just another casualty of political folly.

Until a few years ago, Freddie was a foreman at Atlantis Diesel Engines (ADE). He was happy in his work and although he lived 40 kms from Cape Town, that didn't worry him. After all, he had subsidised housing, could walk to work and there were schools available for his children.

Today, Freddie lives with five others in a tiny shack in the back yard of a house. He is unemployed and has been that way since being retrenched from ADE - that once famous engine manufacturing concern started by the former government as a means of ensuring South Africa's self sufficiency in the face of international sanctions.

If you drive along the West Coast road out of Cape Town past Koeberg Nuclear Power Station, you will - seemingly in the middle of nowhere - come across the turnoff to Atlantis. This apartheid-created town was illogically positioned there some 26 years ago to accommodate what was regarded as a Coloured overflow from Cape Town. It became home to Atlantis Diesel Engines in 1981.

ADE was the main employer in the town, manufacturing what those in the know say were world-class engines. Martin Slabber, who was development manager for Perkins and Mercedes Benz at ADE, says the company made a huge contribution to the South African transport industry.

"Our engines were successful and any problems encountered, we solved. In addition, parts became competitive. There was no controlled price as dealers could stock parts that were compatible with any of the opposition brands. There was resultant price-cutting that helped the operator," he says.

With the introduction of reconditioned engines, there were further benefits. "Our recon engines were competitive, stock was easy to come by and fast installation eliminated downtime." So how did it all come apart?

Paid to move
ADE, along with other manufacturing concerns, was offered substantial wage, housing and transport subsidies to establish factories in the town. Companies were also given relocation subsidies which meant that not only were companies encouraged to move but were almost being paid to do so.

However, nothing this good lasts long and once the subsidies came to an end, the distance from Cape Town took its toll and closures, liquidations and retrenchments became the order of the day. This was the result of "footloose" factories moving from one decentralised area to another.

But there was still ADE being propped up by a government at war purchasing engines for their defence force. Then came 1994 and with an end to hostilities, government accepted a recommendation from the Board of Tariffs and Trade that industry protection for ADE be ended. Government's announcement was to the effect that "the tractor industry has suspended or intends to suspend the purchase of ADE engines."

According to Stanley Visser, director of planning and economic development for Blaauwberg administration for the City of Cape Town (a huge title but an accurate one nonetheless): "ADE was there to support the military and was in the manufacturing business for government." The government called it "tractors".

There was no immediate effect from this announcement since revenues continued from existing local and export orders. Then in 1996, ADE found itself trying to adjust to targeted tariff reductions on imported truck engines of 15% by 2000 in a business environment that ADE MD Ron Shires described as "chaotic". Domestic demand for diesel engines was down 60% with no sign of swinging.

Shift in focus
In 1997, Khaya Ngqula, chief executive of the Industrial Development Corporation (IDC), ADE's main shareholder, announced a shift in the company's focus. The engine assembly activities would be phased-down after the expiry of a Cuban export order but they had "embarked on a transformation process in 1991 to increase productivity to become an internationally recognised automotive component supplier."

This announcement saw the retrenchment of about 30% of the ADE workforce at a time when half the employable residents of the town were already unemployed.

As ADE engines were discontinued by the likes of MAN and Delta, it was finally left to Toyota and Mercedes to take up the final order of the engine stockpile left the following year.

I remember being taken on a tour of the factory when it first opened, in the company of FleetWatch's own Jack Webster. We were bussed around the factory and shown the huge parts storage facilities and manufacturing capabilities.

Today, the giant and once vibrant factory has turned into a business hub. A sign on the perimeter fence gives names of companies such as "Fish 4 business" and "Hantam Bouers". Weeds grow in the parking areas and security points are unmanned. The main sign of activity is from the Forge next door. 

ADE still has warrantee commitments to fulfil. This function is the task of Bernhard Buchholz, who used to be new service manager for the company. He will remain on contract until the last engine is out of warrantee. There is also a financial manager looking after the business park.

Nothing is produced
And so - four people remain out of 2 500. Nothing is produced. DaimlerChrysler makes blocks mainly for export and the forge was sold to a British consortium, TGA SA, which manufactures crankshafts. In August, Atlantis Forge announced that they had been contracted by Ford Southern Africa to manufacture about 1-million connecting rods a year. This created about 40 new jobs increasing the plant's staff compliment to 280.

The effect of the demise of ADE has been felt by all sectors of business in the town. 

Robert Orchard owns Atlantis Toyota, a business he began in 1983. "At that time, Atlantis was seen as the biggest industrial development area in the Cape," he says. His dealership enjoyed a great deal of business from ADE.

"When the factory was in full production, we had around 130 cars there on a guaranteed buy-back deal," he says. "This was mostly monthly business that continued for two years. In addition, our fuel sales were substantial but since ADE's closure, we have seen a 40% decline in volume." 

There is very little business generated locally. Today, only 3% of vehicle sales and 35% of maintenance is generated from the town. Dealing in Toyota vehicles up to Dyna's, they are the only new vehicle dealer in Atlantis. 

I asked him what went wrong. "Atlantis is 20 kilometres too far away. Also, once things started to go wrong and manufacturers began pulling out, nothing was done about it."

Atlantis Railhead as it was	New Power Engines - another liquidation.
and as it is today

A lot to offer
In his opinion, Atlantis has a lot to offer. "The infrastructure is here. There are empty factories, land is cheap, electricity and tarred roads are supplied and there is a labour force within walking distance form the industrial area." 

Blaauwberg took over administration of Atlantis in 1997 when it became clear that the town could not survive on its own. According to Visser, who is intimately involved with the economic development of the area, they are actively promoting Atlantis as a viable industrial centre.

"There is tremendous growth northward so, in fact, Atlantis is getting closer. It is also situated 40kms from Cape Town Harbour and 70 kms from Saldahna, on a straight and tarred road."

Presently, 83 companies employ some 7 500 people out of a population in excess of 70 000. With unemployment in excess of 30%, the balance of the community who manage to find work spend more that 20% of their income in travelling.

This would possibly not be that high if there was an adequate rail service. Unfortunately, the existing railhead has been vandalised and has all but disappeared. In contrast, a photo on display in the local administration offices shows it in operation, although never for the use of passengers.

Visser says that industry is diversified and was reluctant to dwell on the ADE impact. The textile industry is a fairly large employer and Bokomo has recently relocated its main factory there from Malmesbury. However, skilled workers in fields such as fitters and turners, machine operators etc are unable to find work there.

More job losses
At the time of writing, an auction notice appeared to sell off what remained of New Power Engines and Automotive Power Refurbishers, signalling more job losses in this sector.

One of the pro-active moves that Blaauwberg administration has made is to offer land cheaply. Fully serviced land is available for R12 - R14 per square metre compared to land at Killarney Gardens that is going for R320 per square metre. They are hoping to attract sustainable business in particular from foreign manufacturers looking for investment opportunities.

There is no doubt that the community of Atlantis is paying the price of government manipulation - a government which showed many people that life could get better and then simply took it all away again. 

This takes us back to Freddie - and he is not alone. The social workers who took me to his "shack" told me of another couple who were living in a bakkie at someone's home. They are also ex-ADE employees. None of these people were willing to be interviewed, saying they are ashamed of their circumstances.

Should they be ashamed, or should the shame rest elsewhere?

And what of the children?

Peter Cookson is a social development officer for Blaauwberg administration in Atlantis who spends a great deal of his time working with children. Almost on a daily basis he is called to Tableview - some 35 kms away - to collect "street children" who have been caught loitering or pinching in the area. Since they are minors, it is an ongoing problem as they habitually run back to the beachfront where they sleep in the toilets or in the dunes. They claim that it is better to live on the street than at home.  Alcoholism and drug abuse is rampant and Cookson says their biggest problem is with primary school kids. Often these children have parents who are addicts or who run illegal shebeens in order to put food on the table. The fact that women were increasingly better able to secure work, such as in the textile industry, leads to conflict in the home where men feel that their traditional role as breadwinner is threatened. They then turn to alcohol resulting in a total lack of discipline. I waited while he interviewed four boys who emerged from his office quite cheerful and clattered down the stairs pushing each other and giggling. They looked like pretty average high-spirited 8 - 10 year olds.  The facts of the matter were that they had been caught sniffing diesel at school and were quite high. Cookson told me it was easy to spot by their eyes, the yellow tinges indicating to him how long they had been abusing. Glue and diesel were their substances of choice.  Is this all that Atlantis Diesel Engines has left behind? What a waste