Name of the Project
Mercedes-Benz South Africa (MBSA) manufacturing plant expansion.

Location
East London, Eastern Cape, South Africa.

Project Owner/s
MBSA.

Project Description
Plans to significantly expand the Mercedes-Benz East London manufacturing plant to build the new generation of the Mercedes-Benz C-Class are under way. The project includes the construction of a new body shop, expansion of the paint shop, an upgrade of the assembly shop and new logistic warehouses.

The new body shop has been designed for higher capacities and features more than 500 Internet of Things-ready robots, laying the foundation for Industry 4.0 readiness.

A further expansion within in the assembly shop is the integration of about 700 t of structural steel to be installed for the addition of three production lines within the existing shop. Using new paint application technology and methods, the refurbished and expanded paint shop will be more energy efficient and environmentally friendly.

Overall, the energy consumption per vehicle produced is targeted to be reduced by 25% and this is in line with the plant’s initiative for green production. Other examples include an on-site energy storage solution (battery storage container pilot), water storage of one-million litres and the creation of green corridors.

Potential Job Creation
The roll-out of the new C-Class has created 600 new jobs at the East London plant.

Capital Expenditure
€600-million.

Planned Start /End Date
The project was announced at the end of June 2018. The plant started production in June 2021.

Latest Developments
MBSA has started production of the new C-Class, the W206. Production of the previous C-Class, the W205, ceased in May.

Production will include a plug-in hybrid, starting in the fourth quarter of the year.

MBSA has managed to start production on time, despite the global disruption because of the Covid-19 pandemic.

The East London facility has started new C-Class production with a two-shift operation, with the current plan being to expand to three shifts by October.

MBSA CEO and manufacturing executive director Andreas Engling says that local content on the previous C-Class was between 35% and 40%, excluding the power train, with MBSA to chase a target of 60% for the new C-Class, as set out in the South African Automotive Masterplan. 

He has noted, however, that this is not very easy and that it will take time to reach this goal.

MBSA has a project in place, called Late Localisation, which refers to new suppliers that will enter the production line-up during the life cycle of the new C-Class, adding to those contracted at the beginning of production this year.

Components, such as press parts, rear axles, front axles, wind shields, seats and seat structures have all been localised.

Engling has lamented, however, that the engine production will be “too complicated” to install in South Africa.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Mercedes-Benz Cars, global business communications head Sofia Stauber, tel +49 711 174 0598, fax +49 711 177 909 1184 or email sofia.stauber@daimler.com.
Mercedes-Benz South Africa, interim corporate affairs manager, Darian Hendricks, tel +27 82 788 8837 or email darian.hendricks@daimler.com.