Construction of BAIC and IDC Coega announce new vehicle plant

31 August 2016

Chinese vehicle manufacturer Beijing Automotive Group (BAIC) and the IDC on Tuesdayannounced the establishment of a new vehicle plant, to be located in the Coega  Industrial Development Zone (IDZ), near Port Elizabeth.

It will be the first new car plant to be built in South Africa in 40 years.

At full capacity, the R11-billion joint venture (JV) plant will be able to produce 100 000 vehicles a year. BAIC will be the major shareholder, holding 65%  and IDC the remaining 35%.

IDC CEO Geoffrey Qhena said the JV would roll out in two phases. The R4.25-billion first phase will have the capacity to manufacture 50,000 units a year. This is expected to double in Phase 2.

The plant should reach its 50,000-unit capacity by 2022, anticipated BAIC Automobile South Africa JV chairperson Dr Haiyang Dong. The implementation of Phase 2 should be completed by 2027, he added.

The plant will be located on 47.3 ha of land, under a covered area of 88,969 m2.

Local component makers are to supply steel chassis components and assemblies, panel and pressed components, interior and exterior trim, wheels and tyres, automotive glass components, and electrical and electronic components.

Construction of the new plant will start in December and be completed in Q1 of 2018.

Over 2,500 jobs will be created during the construction phase. Around 1,000 people will be employed in the plant during Phase 1, with another 10,000 jobs to be created throughout the automotive value chain.

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