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New bus, truck, taxi and component plants on the cards for SA, says Tisa

28th January 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Government was in talks with a number of vehicle and component manufacturers looking to establish plants in South Africa, said Trade & Investment South Africa (Tisa) investment promotion and facilitation deputy director Sake van der Wal on Monday.

Tisa is a division of the Department of Trade and Industry.

Speaking to Engineering News Online on the sidelines of an Indian component manufacturers conference, held in Tshwane, Van der Wal said an existing truck importer, as well as a bus importer were both investigating the possibility of establishing local assembly plants in South Africa.

These manufacturers were hoping to take advantage of a new government incentive programme to promote the local assembly of buses and trucks.

A third plant could possibly be set up by an existing vehicle importer mulling the assembly of minibus taxis in South Africa.

One of the final projects on the horizon was a long-awaited multimodel assembly plant, proposed for East London, where several vehicle brands could be assembled in low volumes.

“We have made very positive progress in our engagement on the East London plant,” said Van der Wal.

The plant would cater for the assembly of cars, minibuses and bakkies and could accommodate a maximum of six brands.

A multimodel plant could provide newcomer Asian vehicle brands and low-selling brands with a soft landing in South Africa’s manufacturing industry.

The proposed plant was based on a model where a variety of vehicle brands and models could be built using the same assembly facilities, such as the paint shop, body shop, and trim and assembly lines.

Van der Wal said five multinational component manufacturers were also looking at setting up shop in Gauteng, Durban and/or Port Elizabeth.

Edited by Creamer Media Reporter

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