R/€ = 15.22Change: 0.08
R/$ = 14.39Change: 0.08
Au 1067.65 $/ozChange: 3.95
Pt 836.50 $/ozChange: 5.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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

© Reuse this

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
© Reuse this Comment Guidelines (150 word limit)
Other Transport & Logistics News
The tide has turned for South African ports and the Transnet National Ports Authority (TNPA) is pressing ahead with its investment under Transnet’s Market Demand Strategy (MDS) notwithstanding poor economic growth. TNPA CEO Richard Vallihu told a TPA...
Rail parastatal PRASA launched a dramatic court action this week to recover from one of South Africa's biggest ever tender debacles involving billions of rand‚ the newspaper reported. The Passenger Rail Agency of South Africa wants the Spanish company that provided...
It is no longer tenable for the people of South Africa to continue to fund South African Airways (SAA) and SAA board chairperson Dudu Miyeni’s perpetual mismanagement, the Democratic Alliance (DA) said on Sunday. A report in Sunday’s City Press newspaper, which...
Article contains comments
Latest News
The tide has turned for South African ports and the Transnet National Ports Authority (TNPA) is pressing ahead with its investment under Transnet’s Market Demand Strategy (MDS) notwithstanding poor economic growth. TNPA CEO Richard Vallihu told a TPA...
The 865 km gas pipeline from the central processing facility (CPF) in Temane, Mozambique, to Secunda, South Africa, is to undergo a further $210-million expansion, the Republic of Mozambique Pipeline Investments Company (Rompco) confirmed on Monday. Rompco is a joint...
With many organisations worldwide unprepared for the rapidly evolving Internet of Things (IoT) era, Cisco has unpacked plans to bolster the ability of companies in South Africa to embrace the new digital reality. Cisco’s new country digital acceleration (CDA)...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
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
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96