Building the FAW plant in South Africa is very significant from a global perspective, as it is one of the most important and largest investments made by a Chinese entity in South Africa to date.
Dr Rob Davies, Minister of Trade and Industries, says “FAW’s decision to build commercial vehicles locally from completely knocked down kits (CKD), the first OEM to do so across its entire range in SA, is a clear indication that government’s plan to extend the Automotive Production Development Plan (APDP) to the commercial vehicle CKD manufacturers, bus manufacturers and local component manufacturing industry, will attract further expansion in the automotive industry.”
Qin Huanming, Vice President of the China FAW Group Corporation, adds, “As a shining pearl on the African continent, South Africa enjoys sound political, economic and legal systems, as well as excellent infrastructure and abundant labour resources. These favourable conditions have strengthened FAW’s confidence to invest in South Africa.”
The total investment was financed by China FAW Group Corporation, the China-Africa Development Fund (CAD-Fund) together with FAW Africa Investment Company LTD. This collaboration speaks volumes to the growing interest from global Chinese Industry in unlocking the true Africa potential.
A number of firsts for FAW Vehicle Manufacturers SA (PTY) LTD:
– At a cost of USD 60 million towards the establishment of this modern, high-quality vehicle production plant and all its associated infrastructure, this is truly the single biggest recent vote of confidence in the local vehicle industry.
– The Coega plant with it’s build-capacity of 5 000 units per annum, represents the first high-quality Chinese manufacturer to set-up and contribute on this scale, in the Eastern Cape region.
– FAW Vehicle Manufacturers SA (PTY) LTD will be the first OEM to build locally its entire range of commercial vehicles sold here – 14 models spanning the Medium, Heavy and Extra-Heavy Commercial Vehicle segments. Henceforth all FAW trucks in SA can carry the ‘badge of honour’ of ‘Made in South Africa’.
– Future plans include the commissioning of a Body-building Facility at the Coega plant. Tipper Truck bodies, Mixers and Customised Trailers will be built in the facility, nearing completion, and adjoining the main plant. FAW will be the first SA-based OEM to offer its Body-building Facility to other Commercial Vehicle Manufacturers.
The first-phase of the Coega plant, covering 103 000m2 of land and a 28 000m2 plant – complete with training facilities, will allow the company to provide its client base with a sense of pride and patriotism by ‘buying local’. Expected to ramp-up to produce 5 000 trucks per annum, the Coega assembly plant will supply trucks to the South African market, as well as to the rest of Africa, in both right-hand and left-hand-drive derivatives. The current projections are that 40% of production will be destined for the South African territories, while 60% will be exported.
FAW is positive about the future and the growth plan that has been formulated for the FAW brand in South Africa.