The Coega Development Corporation (CDC) says it has signed an R11-billion investment with the Beijing Automobile International Corporation (BAIC), describing the move as “the biggest automotive investment in Africa in the last 40 years”.
The CDC, which operates the 11 500 hectare Coega Industrial Development Zone, says it has concluded a deal with BAIC for a completely knocked down (CKD) automotive manufacturing plant near Port Elizabeth.
“The size of this investment demonstrates confidence by China and confidence in South Africa as an investment destination,” said Rob Davies, minister of trade and industry.
Davies added that the project would position the Eastern Cape as an automotive hub and had the potential of deepening the component supply chain, job creation and economic development.
Although it’s not yet clear exactly what type of vehicles the new plant will produce, earlier reports suggested that the factory would focus on passenger cars.
The BAIC Group is a Chinese state-owned enterprise and holding company of a number of automobile and machine manufacturers.
