New automotive production plant earmarked for Eastern Cape?

The Industrial Development Corporation (IDC) has signed a R12-billion agreement with Beijing Automotive International Corporation (BAIC) to build a car manufacturing plant in South Africa.

With a production capacity of 100 000 vehicles a year, the plant is expected to begin operating by the end of 2017. The project will be rolled out in phases, with the plant having an initial capacity of up to 50 000 units a year, pushing it up to 100 000 units within a year.

IDC spokesperson, Mandla Mpangase, said in a statement that while the location of the plant had not yet been decided, it was expected that it would be based in the Eastern Cape. The car manufacturer plans to export about two-thirds of its production, so access to harbours is critical.

In addition, the Eastern Cape is already home to many of the key players in the automotive sector:  General Motors, Volkswagen and Mercedes-Benz have plants in East London and Port Elizabeth and Ford has an engine plant in the region. Mpangase pointed out that there was also a host of businesses that were able to supply components for the vehicles.

The joint venture will see BAIC producing passenger vehicles, sport utility vehicles, pick-up trucks and multipurpose vehicles.