Name of the Project
BMW Group South Africa (BMW SA) Rosslyn plant investment programme.

Location
Rosslyn, Pretoria, Gauteng, South Africa.

Client
BMW SA.

Project Description
The investment will enable the Rosslyn plant to produce the next-generation BMW X3, which will be sold locally and exported to various countries.

The investment to build a completely new model at the Rosslyn plant requires the biggest structural change in the 44-year history of the plant.

Land adjacent to the plant has been acquired and construction of a new body shop was completed at the end of 2016.

The roof of the assembly facility has been lifted 14 m to accommodate the production of the BMW X3, which is larger and longer than the BMW 3 Series.

The new 26 000 m² body shop, with its improved ventilation and use of natural light, is twice the size of the old body shop. Other structural changes include the revamp of the paint shop, a new combined body stacker and the construction of a new technical training centre and data centre.

In addition, the investment will include the installation of new, state-of-the-art technologies on the various production lines, a 50% increase in body-shop robotics, the training of employees and supplier development.

Production of the next-generation BMW X3 will replace the BMW 3 Series sedan, which will be allocated to other plants in the global BMW production network.

The BMW Spartanburg plant, in the US state of South Carolina, will continue to produce the next-generation BMW X3, alongside its sister plant at BMW Rosslyn.

Potential Job Creation
The investment will allow for employment numbers to remain stable.

In 2016, as part of a planned transition process preparing the BMW Rosslyn plant for production of the next-generation BMW X3, the employment status of several employees who were previously on fixed-term employment contracts were converted to that permanent employees. This provides the Rosslyn plant with a more sustainable model for the future, with added flexibility to adapt to increases or decreases in production.  This approach is also positive for the plant’s competitiveness.

Value
More than R3-billion will be invested in new state-of-the-art facilities and operations at the plant.

An additional R3-billion will be for suppliers, launch costs and the training of associates.

BMW SA has invested R160-million to enhance production-line speed at its Rosslyn plant.

Duration
The investment was announced in November 2015 and culminates with the start of production in the first half of 2018.

Latest Developments
BMW SA has dispatched its first made-in-South Africa X3 vehicles for export, transporting more than 100 units on 27 wagons by train to the Durban port, with Europe being the final destination.

“[This is] . . . the culmination of three years of hard work and planning,” BMW SA CEO Tim Abbott has said.

“It’s really exciting to know that BMW Group Plant Rosslyn has joined the enormous success story of BMW’s X models globally, and goes to show the power of combining good industrial policy and foreign investment.”

The BMW Vehicle Distribution Centre in Rosslyn can accommodate up to three train dispatches a week, with each transport capable of carrying up to 160 cars.

In February 2018, the plant produced the last of 1 191 604 BMW 3 Series cars built over five model generations and 35 years.

BMW X3 production was initially planned with a maximum capacity of 71 000 units a year.  However, the German car maker underestimated the demand for the new BMW X3 and, after a further R160-million investment to increase line speed, the maximum capacity of the plant has been expanded by almost 10%, to 76 000 units a year.

Within this maximum capacity, BMW SA is confident the plant will produce record volumes in 2019.

BMW X-model sales comprise more than 30% of BMW’s global sales volume.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Yes.

Contact Details for Project Information
BMW SA GM group communications, Diederik Reitsma, tel +27 12 522 2525 or email diederik.reitsma@bmw.co.za.
Stefanutti Stocks, tel +27 11 571 4300, fax +27 11 571 4370 or email holdings@stefstocks.com.