Metair is a leading international manufacturer, distributor and retailer of automotive components and energy storage solutions. The company produces and sells components mainly to original equipment manufacturers (OEMs) in South Africa to manufacture cars and light commercial vehicles and has produced parts locally for more than 400,000 vehicles during 2020.

    • Company: Metair
    • Headquarters: South Africa
    • Founded: 1948
    • Industry: Manufacturer of energy storage products and automotive components
    • Company Size: Publicly-owned company listed on the Johannesburg Stock Exchange
    • TreasuryONE services selected: Exchange Rate Risk Management
Components for parts are imported from Europe and then sold to local car manufacturers. Import prices are set in the respective foreign currencies and must be hedged to protect the ZAR value, the group’s profitability is significantly impacted by exchange rate and currency risk.
The rand is one of the most volatile currencies in the world. For importers and exporters, market risk and currency volatility pose real risks to their businesses, and exchange risk management continues to be a priority for South African CFOs and treasurers.
  • Access to a team of market risk specialists
  • Advice on commodities price and interest rates risk in addition to FX risk advice
  • Hedging program, tailored to fit Metair’s business patterns, outlook and risk policy
  • 100% cash visibility to better manage cash in the business
  • Access to a full treasury management system (TMS)
  • Within the Metair group, TreasuryONE’s dealing team works closely with each subsidiary’s management team to protect them from adverse movements in the exchange rate when the risk arises, ensuring that the company is effectively hedged and adverse exchange rate movements are avoided.
  • The group of companies under Metair are managed differently regarding the way the risk arises. TreasuryONE’s dealing team looks at each company on its own and constantly compares the benchmark rates with where the market is, thereby looking for opportunities in the market to constantly improve Metair’s effective coverage rate.
  • The TreasuryONE Market Risk team uses technical and economic analysis, coupled with the sentiment that is in the market at any given moment to determine levels that should be targeted.