Construction on new Chinese auto plant at Coega imminent

Construction on a R200- million commercial vehicle assembly plant for Chinese state-owned vehicle manufacturer First Automobile Works (FAW) is due to start in November. This follows a tender process, according to Zhao Dan, FAW project manager for FAW Africa Investment. “The successful bidder has been requested to finalise the construction contract for this award. FAW plans to sign the agreement with WBHO next month and construction will commence in November 2012. We are eager to turn the investment into reality,” he said. The company’s investment at the Coega IDZ centred on the zone’s strategic location, proximity to the Port of Ngqura, logistical solutions offering, and the availability of skills in Nelson Mandela Bay and support mechanisms offered by the CDC, according to Dan. Arnie Van Jaarsveldt, managing director of WBHO Construction Eastern Cape, confirmed that the award had been formally received after five months of a “rigorous” bidding processes, both in Port Elizabeth and in Changchun, China, FAW’s head office. The truck plant, the first phase of FAW’s development in the Coega IDZ, will be built on 400 000 sqm of land in Zone 2 and is expected to produce 5 000 trucks annually, with an eye on the African market. Light commercials and passenger cars assembly are planned for the second phase.