The PSA Group has announced that it has signed a joint-venture agreement with the Namibian government to create an assembly plant in Walvis Bay.
In a statement, the French group said that its joint-venture agreement with the Namibia Development Corporation would see Opel and Peugeot vehicles assembled on a semi-knocked-down basis in Walvis Bay. The automotive group said that assembly would start in the second half of 2018, with an annual targeted volume of 5 000 units by 2020.
The Opel Grandland X (which is expected to launch in South Africa in May 2018) and Peugeot 3008 would be the first vehicles assembled at the new factory, with “other products” to follow to “meet customer demand”. The plant would serve markets in Namibia, South Africa, Bostwana, Lesotho and Swaziland.
The statement added that the project illustrated the Opel brand’s real potential in the region, with the decision to manufacture vehicles from the German automaker locally “decided and implemented in a record time frame”.
“This investment in Namibia is part of the long term strategy of Groupe PSA to increase its sales in Africa and the Middle East, consistent with our target to sell one million vehicles in 2025,” said Jean-Christophe Quemard, executive vice president for Middle East and Africa Region at the PSA Group.
“This new capacity will serve regional markets with products in line with our Opel and Peugeot customer expectation,” he added.