Iveco announced at the Johannesburg International Motor Show (JIMS) it is building a production plant in South Africa which forms part of its strategy of manufacturing globally, while tailoring products for local needs.

This commitment over time according to Bob Lowden, MD for Iveco in South Africa, will have considerable advantages for the company as it will be able to complete and optimise its product offering in line with customer requirements, adding local contents as well as being able to assemble locally to improve competitiveness.

Lowden says, “We have formed a local industrial joint-venture with the Larimar group in which Iveco will have a 60% shareholding. Larimar is a diversified group of companies with interests in passenger transport, freight transport, vehicle production and engineering manufacturing.”

The new production facility will come on stream in 2014 and is a Completely Knocked-Down (CKD) assembly plant located in Rosslyn, near Pretoria. The company is investing R530 million in the plant and when fully operational will employ a 1000 people with a 4-mark BBBEE ranking. Its production capacity will reach 5000 units a year covering its commercial range.