EL IDZ gets ready for C-Class production era

The East London Industrial
Development Zone (IDZ)
is laying the groundwork
for increased automotive
investments, with multimillion
rand expansion due to
be completed in the course of
2012.
The automotive industry
is one of the main arteries of
local economic development
in the Eastern Cape and the
East London IDZ has attracted
major players in the industry,
says East London IDZ chief
executive Simphiwe Kondlo.
“One of the IDZ’s main
automotive investors,
Mercedes-Benz South Africa,
has announced plans to
produce its new generation
C-Class (W205) at its East
London plant, a move that will
inject billions into the local
economy through the direct
investment and spin-offs,” says
Kondlo.
“Currently Mercedes-Benz’s
parent company, Daimler
AG, is preparing to inject a
further R2.5 billion into its
East London manufacturing
plant following the decision to
produce the C-Class (W205)
model in South Africa,
alongside sister plants in
Germany, the US and China.”
And with the first W205 due
to roll off the assembly line
this year, the IDZ is hard at
work preparing for the feeder
ramifications of this new
investment.
“To best prepare for and
sustain these opportunities,
and to stimulate future
automotive developments,
the IDZ has authorised a
pre-feasibility study to look
into ways to both enhance
and refine the Multi-
Model Original Equipment
Manufacturing model,” says
Kondlo.
The automotive industry
remains a crucial partner with
multiple cross-cutting benefits
measurable in both direct and
downstream terms, he added.
“Our partnership with
MBSA has been hugely
beneficial for the region and
the country as a whole, and as
we head into a new C-Class
production era, this partnership
will continue to grow with
exponential benefits.”
Kondlo believes that the
overall success achieved in
the automotive supplier park
goes to the heart of what the
IDZ prioritises in its value
proposition.
“The suppliers located
in the park are producing
world-standard products and
components which are globally
competitive. Every Mercedes-
Benz C and E-class unit rolling
off the world world’s assembly
lines sports a component
manufactured right here in our
zone by Foxtec-Ikhwezi.”