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Mar 18, 2010

Future of Kempston road plant uncertain

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General Motors South Africa (GMSA) may soon put up a ‘for sale’ sign outside its Kempston road plant, in Port Elizabeth.

General Motors (GM) Africa MD and president Edgar Lourencon says GMSA is in the process of consolidating its plants by moving production from the Kempston road facility to the nearby Struandale plant.

“We are in the process of 
further improving our production processes. We started moving some time ago already.”

Lourencon says the process should be completed by 2012.

Some administration and engineering functions are to remain at the Kempston road plant.

However, adds Lourencon, GMSA is weighing the options open to the company regarding the facility, including putting it on the market should it make business sense.

“Already some companies have contacted us to express their 
interest in the facility – renting or leasing – and we will study these opportunities.”

The interested parties are not active in the automotive industry.

GMSA assembles the Isuzu and Corsa Utility in Port Elizabeth.

Production at the Struandale plant started in 1996, and already 
in 1926 at the Kempston road plant.

Kempston road has 180 000 m2 of building space, and Struandale 76 525 m2.

 

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
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