http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.93Change: -0.14
R/$ = 15.78Change: 0.06
Au 1242.35 $/ozChange: 49.30
Pt 957.00 $/ozChange: 24.50
 
 
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
© 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

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
DTBSA executive director Kobus van Zyl
Updated 2 hours 26 minutes ago Daimler Trucks & Buses Southern Africa (DTBSA) announced on Thursday that it had expanded its area of responsibility from South Africa, Lesotho, Botswana, Namibia and Lesotho, to also include Malawi, Mozambique, Zimbabwe and Zambia, through the formation of the...
Updated 4 hours ago Following six years of negotiations between governments, the aviation industry and environmental group observers, the International Civil Aviation Organisation (Icao) has designed the world’s first carbon dioxide (CO2) efficiency standard for aircraft. The standard,...
Craig Uren
The price of a new truck in South Africa will probably increase by around 10% in the first half of this year, estimates Isuzu Truck South Africa (ITSA) director and COO Craig Uren, with another 5% possible in the second half of 2016. These general price increases are...
Article contains comments
More
 
 
Latest News
Incoming joint Sasol CEO Bongani Nqwababa
Updated 1 hour 5 minutes ago Incoming joint Sasol CEO Bongani Nqwababa believes “simplistic” correlations of the company’s performance to the oil price will become less relevant in coming years as the revenue and profit contribution of its chemicals business rises in line with its large North...
Updated 1 hour 14 minutes ago Despite ending the year better than expected, South Africa’s manufacturing production prospects for 2016 remained “dim”, stated BNP Paribas securities economist Jeffrey Schultz on Thursday. Manufacturing production ticked up 0.4% year-on-year in December 2015,...
Updated 1 hour 56 minutes ago Cement and concrete manufacturer Lafarge South Africa has confirmed that about 800 of its employees will embark on a protected strike on Thursday evening. Following extensive negotiations, the company and the National Union of Mineworkers (NUM), had not been able to...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
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...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
 
 
 
 
 
 
 
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