https://www.engineeringnews.co.za

BAIC vehicle manufacturing plant project, South Africa

2nd September 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

Font size: - +

Name of the Project
BAIC vehicle manufacturing plant project.

Location
The plant will be located on 47.3 ha, under a covered area of 88 969 m2, in the Eastern Cape Industrial Development Zone (IDZ) of South Africa.

Client
The Industrial Development Corporation (IDC) and the Beijing Automotive Group Corporation (BAIC) have signed a deal to develop the vehicle manufacturing plant.

BAIC will be the major shareholder, holding 65% of the venture. The IDC will hold the remaining 35%.

Project Description
The BAIC plans to build a completely knocked-down vehicle manufacturing plant in the 50 000 ha zone, which is linked with the Ngqura deep-water harbor, located not far from Port Elizabeth. The car manufacturer plans to export about two-thirds of its production, so access to harbours is critical.

The plant will produce passenger, multipurpose and sports utility vehicles, as well as bakkies, and will be rolled out in phases. The plant will have an initial capacity of 50 000 vehicles a year, ramping up to 100 000 units a year.

The project will be rolled out in two phases.

The first phase will have an installed capacity to manufacture 50 000 units a year and will include a body shop, paint shop and assembly line. It will produce small cars, small sports-utility vehicles and pickups – three of the most popular vehicles in South Africa.
Phase 2 will double production to 100 000 units a year.

The project consolidates the Eastern Cape as an automotive hub, with companies, such as Volkswagen, Mercedes Benz and General Motors, already major investors in the province.

Plans for the BAIC plant include the future construction of a supplier park in the Coega IDZ to facilitate parts supply to the assembly line.

Jobs to be Created
More than 2 500 jobs will be created during the construction phase. About 1 000 people will be employed in the plant during Phase 1, with another 10 000 jobs to be created throughout the automotive value chain.

Value
The investment is valued at R11-billion.

Duration
Construction of the new plant, which would start in December, is expected to be completed in the first quarter of 2018.

The plant should reach its 50 000-unit capacity by 2022, according to BAIC Automobile South Africa JV chairperson Dr Haiyang Dong. The implementation of Phase 2 should be completed by 2027, according to current planning.

Latest Developments
The official sod turning for the project was held on August 30.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
IDC, tel +27 11 269 3000 or fax +27 11 269 3116.
BAIC, tel +86 10 56630185 or email haojinyi@baicintl.com.
 

Edited by Creamer Media Reporter

Comments

Showroom

SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 
SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.144 0.201s - 159pq - 2rq
Subscribe Now