Construction on a new R11 billion Chinese vehicle factory in Port Elizabeth is set to commence in 2016 and 2017, the Industrial Development Corporation (IDC) has announced.
The factory is for the Beijing Automobile International Corporation (BAIC), China’s fifth-largest car manufacturer, partly funded by the IDC.
While the IDC has not yet established how much it will invest in the venture, it has claimed that it will be in the region of 20-35%. The project is expected to create as many as 10,000 direct and indirect jobs in the region.
The plant will initially have the capacity to produce up to 50,000 units a year, with capacity doubling as development continues.
According to IDC spokesperson Mandla Mpangase, BAIC is planning to enter the South Africa market in August 2016, with sedans and SUVs.
Construction is expected to be completed in 2018.
Ford Motor Company recently revealed its plans to invest R2.5 billion to expand its operations in South Africa at its Silverton Assembly Plant in Pretoria – specifically to produce the new Ford Everest SUV.
The investment will create approximately 1,200 new jobs at Ford South Africa and within the South African supplier network, the company said.