Name of the Project
BAIC vehicle manufacturing plant project.

Location
The plant will be located 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%, with the IDC holding 35%.

Project Description
The project entails the construction of a completely knocked-down vehicle manufacturing plant in the 50 000 ha Coega IDZ, which is linked with the Ngqura deep-water harbour, 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 producing 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, a paint shop and an assembly line. It will produce small cars, small sports-utility vehicles (SUVs) 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. The implementation of Phase 2 should be completed by 2027, according to current planning.

Latest Developments
BAIC SA opened its 88 969 m² vehicle assembly plant, in the Coega IDZ, on July 24.  

The company has completed the critical construction and equipment installation milestones for Phase 1 of the historic R11-billion investment in the assembly plant.

The R2-billion Phase 1 of the BAIC SA plant, comprises a 4 200 m² office block, and an assembly and body shop of 42 000 m² fitted with robotic equipment. 

Phase 1 involved the completion of the semi-knocked-down line and satisfactory progress on construction work streams of its vehicle assembly plant.

The full-scale production of BAIC’s compact SUV, the BAIC X25, will start in the fourth quarter.

Construction will shortly start on the 21 000 m² paint shop, which is scheduled to be completed by the end of 2019.

The manufacturing process and the entire plant design takes into account energy conservation and environmental protection by adopting mature, advanced, low-pollution and energy-saving manufacturing technologies.

The factory also uses artificial intelligence.

BAIC has also extensively engaged South African automotive component manufacturers and suppliers through a procurement and supply division over the past two years.

BAIC SA has successfully engaged and formed memorandums of understanding with the first group of local suppliers to develop its South African supply chains. This year's localised parts procurement plan will include 39 parts; mainly based on the production of accessories for interior parts such as roof lining, carpets and seats.

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.