Name and Location
FAW truck plant project, Eastern Cape, South Africa.

Client
FAW South Africa (SA), a joint venture between a local company and Chinese vehicle manufacturer, FAW.

Project Description
The project involves the construction of a truck and passenger car plant, in the Eastern Cape. The aim of the new, expanded plant is to service the South African market and the African markets and, eventually, South America.

The 28 000 m² plant will have a production capacity of 5 000 trucks a year, ranging from smaller trucks to extra-heavy trucks.

If all goes well with truck production in South Africa, FAW plans to start construction of a passenger car plant in 2015.

Units produced by this plant will be distributed locally and exported into Africa.

Value
The project is valued at R600-million. The plant has been financed by FAW China and the China-Africa Development Fund.

Duration
The truck assembly plant came into production in the second half of 2014.

Latest Developments
FAW has started production of truck bodies at a new body shop facility, located next to its Coega-based truck assembly plant, in the Eastern Cape, which opened its doors in 2014.

“Not only have we managed to produce our FAW trucks at the best quality levels, comparable – if not better – than our FAW parent company in China – but we have been able to do so in a very short run-in period for a plant that only came on stream six months ago. Now we are also building our first tipper bodies from semi-knockdown (SKD) packs imported from our parent plant in China,” says FAW Vehicle Manufacturers SA CEO Yusheng Zhang.

Once a SKD pack is off-loaded, the bulk of the pack, namely the bin, is prepared for the assembly line.

If minor reworking, including welding and grinding, is required, this is done before the bin proceeds along the assembly line to the scalding and degreasing chamber where it is cleaned, treated chemically and dried.

Following basic metal preparation, the bins are moved along gantries to the fitment stations.

Other components, such as hydraulics, lift arms and shafts, are moved to the in-sequence stations for fitment.

Once the tipper body is fitted to the truck, the vehicle goes to the paint shop, followed by drying and final inspection.

FAW estimates that it will build around 100 tipper bodies in the first quarter of 2015.

The SKD kits save FAW time in delivering the finished truck to the customer.

The company says it may expand its truck body offering to include other configurations, depending on demand.

The production team is assessing the viability of producing drop-side bodies and customised trailers for FAW’s range of trucks, spanning the medium, heavy and extra-heavy commercial vehicle ranges.

Other bodies, such as mixer drums, may also be considered in the future.

At the opening of its assembly plant last year, FAW indicated that it would offer other local truck assemblers the opportunity to make use of its truck body building facility.

The first-phase of the Coega plant encompasses 103 000 m² and a 28 000 m² plant.

The R600-million plant will eventually ramp up to produce 5 000 trucks a year, supplying vehicles to the region, in right-hand- and left-hand-drive derivatives.

Estimates are that 40% of production will be destined for the local market, while 60% will be exported.

Key Contracts and Suppliers
FAW China (finance).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
FAW SA, tel +27 31 700 5167 or fax +27 31 700 6292.
FAW China, tel +86 431 8761 4780.