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 30 000 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
Vehicle assembly is expected to start in the first half of 2014.

Latest Developments
The first commercial truck rolled off the assembly line at the FAW Coega assembly plant on July 10.

Based on the seamless commissioning of the new truck-assembly plant, FAW aims to build a facility capable of producing 35 000 passenger vehicles a year.

The truck manufacturer further plans to commission a body-building facility adjoining the Coega-based plant, where tipper truck bodies, mixers and customised trailers will be built. The facility will be offered to other commercial vehicle manufacturers.

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

Meanwhile, FAW will revamp its existing facility in Isando, Gauteng, into a fully fledged service centre accommodating the parts warehouse, which will have R38-million in stock.

By 2016, FAW will 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.

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.