BMW Group South Africa Rosslyn plant investment programme

27th May 2016 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

BMW Group South Africa Rosslyn plant investment programme

Name and Location
BMW Group South Africa (BMW SA) Rosslyn plant investment programme.

Client
BMW SA.

Project Description
BMW plans to invest R6-billion at its Rosslyn plant, in Pretoria, Gauteng, to enable the 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 installing new technology on the production line; lifting the roof to accommodate production of the X3, which is bulkier and longer, compared with the 3 Series; a revamp of the paint shop; establishing a new technical training centre and information technology backup centre; and building a new bodyshop.

The realignment of production at Rosslyn is in response to the continuing growth of the sports-activity vehicle segment worldwide.

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.

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 training of associates.

Duration
Not stated.

Latest Developments
The investment was announced in November 2015.

Key Contracts and Suppliers
BMW SA has started the construction of new bodyshop at its Rosslyn plant. At 26 000 m2, the new bodyshop will be almost 50% bigger than the current one. There will also be an increase of almost 50% in the numbers of robots in the facility, at about 300 units.

The group has acquired a site of about 33 000 m2 adjacent to the plant for the new building.

The bodyshop is being built by Stefanutti Stocks. The building will be handed over to BMW SA in the first half of next year.

The Rosslyn plant’s old bodyshop will become a logistics area.

On Budget and on Time?
Not stated.

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.