As the first commercial truck rolled off the assembly line of the new R600-million, 28 000 m2 First Automotive Works (FAW) Coega Assembly Plant, in Nelson Mandela Bay, on Thursday, FAW aimed to focus on new expansion plans, both at its existing Johannesburg-based assembly facility and at Coega.

The Eastern Cape-based plant was officially opened at an inauguration ceremony attended by President Jacob Zuma, in Zone 2 of the Coega industrial development zone, in the Eastern Cape, marking a “new chapter” for the China-headquartered company that has had a presence in South Africa for the past 20 years.

The plant, which was expected to produce 5 000 trucks a year, would supply FAW’s entire range – comprising 14 models – of small to extra-heavy trucks to South Africa and beyond into the rest of Africa.

About 40% of the planned production would be supplied into the South African market, with the remaining 60% exported.

“On the African continent, where FAW Africa Investments also provides sales and service, more than 50 000 FAW vehicles have been sold since FAW first came to Africa. Since our original presence here, FAW Vehicle Manufacturers South Africa has sold about 11 000 units,” FAW Vehicle Manufacturers SA CEO Yusheng Zhang pointed out.

FURTHER EXPANSIONS
Based on the seamless commissioning of the new truck assembly plant, FAW, which was “ideally” placed to benefit from the demand for vehicles on the continent, aimed to establish a 35 000-a-year-capacity passenger vehicle facility, with construction set to start next year.

The truck manufacturer further planned to commission a body-building facility adjoining the Coega-based plant, where tipper truck bodies, mixers and customised trailers would be built.

The potential manufacture of a waste compactor vehicle was also being considered.

“Following the smooth introduction of our commercial-vehicle production line, which includes the full chassis, driveline, cab fitment and paint shop, we plan, in the near future, to commission our fully integrated body-building facility,” commented Yusheng.

The body-building facility would be offered to other commercial vehicle manufacturers.

Meanwhile, FAW would revamp its existing assembly facility in Isando, Gauteng, into a fully-fledged service centre accommodating the parts warehouse, which would carry R38-million in stock.
With the addition of the R20-million in stock held at each of FAW’s Cape Town and Durban branches, stock to the value of R78-million supported the truck manufacturer’s customers throughout South Africa and Africa.

FAW, which said the continent was serviced by 23 distributors and dealers, also announced its intention of expanding its current 36 sales and services dealer footprint across South Africa even further.

By 2016, FAW would boast an employee complement of 750, up from the current 285, on the back of the newly commissioned Coega plant and the facility expansion in Johannesburg.