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

Location
Rosslyn, Pretoria, Gauteng, South Africa.

Client
BMW Group South Africa.

Project Description
BMW Group South Africa is investing 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 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 installing 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.

Jobs To Be Created
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 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.

In addition, BMW SA plans to invest R160-million to enhance production linespeed at its Rosslyn speed.

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 will invest an additional R160-million in its Rosslyn manufacturing facility to enhance production linespeed.

The enhancement raises the maximum production capacity by almost 10%, from 71 000 units to 76 000 units, enabling the plant to, in future, potentially produce the highest volume in its 44-year history.

The additional investment comes on the back of the R6-billion investment announced in November 2015 for the preparation of the plant to produce the BMW X3.

BMW X models accounted for more than 30% of the total global sales for the brand in 2016. The BMW X3, in turn, accounted for more than 24% of sales of the global BMW X-model range.

Local production of the BMW X3 will start in 2018. The vehicles will be sold in South Africa and exported to Europe.

Plans to create a centre of production excellence at the company’s Rosslyn plant are under way, with the largest infrastructure upgrade in the history of the facility completed and staff upskilled in state-of-the-art technologies.

Supplier development and localisation strategies are in progress, and the company is confident that the BMW X3 will be more localised than the current BMW 3 Series.

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.