Defy, a leading South African home appliance manufacturer, has announced an additional investment of R500 million in its local operations over the next five years. This announcement was made by CEO Mustafa Soylu during an event celebrating the company’s 120-year anniversary.
Over the past 15 years, Defy has invested more than R2.6 billion in South Africa, despite the challenges of doing business in the country. Soylu highlighted the company’s commitment to job creation and problem-solving, emphasising that they continue to build and innovate even in tough times.
Founded in 1905, Defy has expanded significantly and now produces over two million appliances annually at its manufacturing facilities in Jacobs, Durban, and eZekheni. The product range includes cooling appliances, cooking appliances, and top-load washing machines, which were introduced to local production in 2019.
Defy became part of the Turkish Arçelik group in 2011, marking a pivotal moment for the company. This partnership has provided Defy with global expertise, enabling it to enhance its investment and operational capabilities in South Africa.
The new R500 million investment will focus on expanding and upgrading technologies in local production, particularly in energy efficiency and renewable power. Defy recently launched a solar off-grid appliance range, allowing users to operate independently from the national grid.
At its Jacobs facility, Defy has installed a 1 MW solar rooftop system, supplying 13% of the factory’s electricity. Discussions are ongoing to implement similar systems at other sites to improve sustainability.
Soylu acknowledged the operational challenges in South Africa, particularly regarding logistics and supply chain issues. However, he noted that local manufacturing allows for better product availability amidst global disruptions. Cost-effective production remains crucial in a highly competitive market, especially against lower-priced imports.
The company is focused on producing affordable appliances to improve market penetration, addressing the fact that fewer than 10% of South African households own a dishwasher. Despite economic pressures, appliance prices have decreased in rand terms, enhancing consumer accessibility.
Defy aims to meet high energy efficiency standards, with all fridges produced rated A or higher. Soylu stressed the importance of educating consumers about the long-term value of energy-efficient appliances, highlighting that upfront costs are only part of the equation.
The company’s South African operations also serve as a hub for exports to 35 countries in sub-Saharan Africa. Defy is committed to fostering innovation within the continent, supported by a team of 40 engineers and technicians in South Africa.
Looking forward, Defy plans to develop smarter, more connected, and sustainable appliances while ensuring that local job creation and manufacturing remain central to its strategy.