http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.95Change: 0.06
R/$ = 14.87Change: 0.04
Au 1288.44 $/ozChange: 11.62
Pt 1078.20 $/ozChange: 16.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 14, 2011

FAW South Africa to build $100m truck, car plant in Eastern Cape

Back
Construction|Africa|Engineering|Export|Trucks|Africa|Automotive|Product|Service|Operations
Construction|Africa|Engineering|Export|Trucks|Africa|Automotive|Service|Operations
construction|africa-company|engineering|export|trucks|africa|automotive|product|service|operations



FAW South Africa (FAW SA) will start construction of a $100-million truck and passenger car plant in the Eastern Cape in the first quarter of next year, says FAW SA operations manager Mehdi Abbas.

FAW SA is a joint venture between a local company and Chinese vehicle manufacturer FAW, which owns the majority share in the local operations. China FAW will provide the funding for the venture.

FAW is number 197 on the Fortune 500 list, and last year recorded $44-billion in turnover, FAW SA MD Richard Leiter tells Engineering News.

FAW last year produced 2.54-million trucks and cars, and manufactures vehicles in China in joint venture with companies such as Volkswagen, Toyota and Mazda.

FAW is also to move to private ownership, and will go public in 2012, says FAW SA GM Liu Xia.

The Eastern Cape plant, which will be located on a 400 000 m2 site, will have an annual capacity of 5 000 trucks a year, ranging from smaller trucks right up to the extra-heavy beasts.

The plant will also produce light commercial vehicles and passenger cars, which FAW does not yet sell in South Africa.

Annual light commercial vehicle and passenger car plant capacity will be 30 000 units a year, and the product range will include single and double half-ton bakkies – more of the workhorse kind than the leisure kind – as well as sedans and hatchbacks.

FAW SA was to unveil its bakkie and passenger car range in South Africa at the Johannesburg Motor Show, which started on October 8, with sales of these vehicles kicking off in early 2012.

Abbas says FAW SA has inked a deal with the Imperial group to distribute the vehicles locally.

FAW SA currently has 18 truck dealerships in South Africa, but wants to grow this footprint significantly, he adds.

FAW SA has been selling trucks in South Africa since 1993, with current assembly, in modest numbers, taking place at its Ekurhuleni plant.

The aim of the new, expanded plant is to service not only the local market, explains Abbas, but also the African market, as well as, eventually, South America.

“South Africa and the rest of Africa are our number one priority. It is a widely held belief in Africa that South Africa has high standards and that it produces reliable, high-quality goods, which is why we chose South Africa as our export base. We believe Africa will be the world’s next growth engine.”

Abbas does not want to divulge local sales volumes.

Leiter notes, however, that Africa is an important market for the company, and that, for example, it delivered 80 buses to Zimbabwe earlier this year.

“We are looking at setting up a dealership in Harare.”

The company already has dealerships in some African countries.

Angolan FAW sales reached around 4 000 units last year.

Abbas says FAW SA has been locked in talks with the Department of Trade on Industry (DTI) on incentives for its proposed investment, but that nego- tiations are ongoing.

The DTI confirms these negotiations.

At its current numbers, the plant’s annual capacity will fall short of the 50 000 units a year required to qualify for incentives under government’s Automotive Production Development Pro- gramme, set to be implemented in 2013.

However, Abbas says the 50 000 unit threshold is “not a problem”.

The first vehicle is expected to roll off the assembly line at the Eastern Cape plant in 2015. The FAW SA Ekurhuleni facility will then become a parts distribution centre.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
The BMW i3
Updated 5 hours ago BMW Group South Africa (BMW SA) has partnered with Uber to bring the UberGREEN service to market. The UberGREEN service is a pilot project taking place from May 9 to June 3, in Johannesburg.
Updated 5 hours ago Transnet National Ports Authority (TNPA) on Friday launched two tugboats – Qunu and Cormorant – as part of its R1.4-billion contract to procure nine tugboats from Durban shipbuilder Southern African Shipyards. The contract was the largest single contract TNPA had...
Trade and Inustry Mininster Dr Rob Davies
Updated 7 hours ago Localisation, transforming the South African economy into an inclusive one and skills development remained long-term goals for government, Trade and Industry Minister Dr Rob Davies said this week. Speaking at Volkswagen South Africa’s (VWSA’s) inaugural black-owned...
More
 
 
Latest News
Updated 1 hour 36 minutes ago A survey conducted by EY show that Acciona Energy's activities in South Africa have contributed $295-million to the country's gross domestic product (GDP) and created over 9 500 jobs. The goal of the survey, entitled ‘Acciona Energy in South Africa: A business...
Necsa chairperson Dr Kelvin Kemm
Updated 4 hours ago The general perceptions, often misinformed, surrounding nuclear development and South Africa’s nuclear programme need to be unpacked and clarified, so that citizens can make their own informed decisions, rationally, around the subject, industry proponents urged on...
Updated 4 hours ago South Africa launched its third National Action Plan (NAP) on Friday, which includes a high-level commitment to creating a public register of beneficial ownership information. The NAP was part of the Open Government Partnership (OGP) discussions, which were held in...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
Following the drop in commodity prices and China’s demand for Africa’s resources, African economies were slumping and gross domestic product growth was stagnating in most of the continent’s emerging markets, said the New Partnership for Africa’s Development, or...
The New Development Bank, a multilateral lender formerly known as the Brics Development Bank, will provide $811-million in a first round of loans for clean energy projects in four nations.
South African car and bakkie exports into Africa declined for the third year in a row in 2015, falling from 79 228 units in 2012, to 77 589 units in 2013, 60 189 units in 2014, and 41 446 units last year – this according to the Automotive Industry Export Council’s...
Networking systems multinational Cisco is training 75 people as part of a pilot project to develop specialist networking skills in South Africa, says Cisco South Africa CTO Vernon Thaver. The trainees were nominated by and selected from Cisco’s local partners and...
The threat landscape is changing, along with technologies, impacting on new fields, such as industrial infrastructure, which is becoming increasingly connected. Smart cities are also developing fast through connected devices, Web services and cloud solutions, but...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149