Automotive supplier ZF LIFETEC has confirmed it will shut down its manufacturing plant in Atlantis, dealing a major blow to the local economy and leaving around 300 employees facing retrenchment.
The closure follows years of mounting financial and operational pressures that made continued operations unsustainable, the company said in a statement. The plant, sized around 7,500 square metres, has been operating since 1997, and was called TRW Occupant Restraints before it was acquired by the ZF group in 2015.
They announced last week that operations at the plant will officially cease this Friday, 15 May 2026, following a lengthy CCMA-facilitated consultation process that began in October 2025. The consultations involved the National Union of Metalworkers in South Africa (NUMSA) and representatives of non-unionised employees in terms of Section 189A of the Labour Relations Act. A company spokesperson, Stephan Haas, said the consultation process has now “run its course”, with the company taking the final decision to terminate operations at the Atlantis facility.
The Atlantis plant manufactured three major automotive safety product categories, including airbag systems, seat belt systems and steering wheel systems. ZF LIFETEC is a global passive safety technology provider specialising in the development and manufacturing systems designed to protect vehicle occupants. The company employs around 34,500 people globally and operates 49 facilities across 22 countries, with a market share of more than 20 percent in its core product categories. “The facility in Atlantis assembled three different product categories – air bag systems, seat belt systems and steering wheel systems. It had long faced significant cost pressures, insufficient customer demand, sourcing difficulties, and infrastructure-related disruptions in the South African automotive environment,” Haas said.
“Global geopolitical tensions and macro-economic issues, such as the introduction of unforeseen tariffs on exported vehicles, had further exacerbated these challenges and significantly impacted the industry. Despite multiple efficiency programmes introduced in recent years, the plant has been unable to achieve the economies of scale required to remain financially viable due to factors outside of the company’s control,” he explained.
The closure is also expected to have a severe socio-economic impact on Atlantis, an area already grappling with high unemployment levels and economic hardship. The company confirmed that severance packages will be provided to affected employees. “After the official closure on May 15, there will be a winding-down phase. Subsequent use of the plant has not yet been decided. We do not rule out the option of a sale,” Haas said.
