Mercedes-Benz to invest R10bn in East London plant expansion

26th June 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

Automotive manufacturer Mercedes-Benz Cars will invest €600-million, or about R10-billion, to expand its South African subsidiary Mercedes-Benz South Africa’s (MBSA’s) manufacturing plant, in East London, and equip it for the future.

The investment will be used to build a new paint shop and a new body shop and to upgrade the assembly shop and new logistics warehouses.

The expansion will safeguard the 3 300 jobs of MBSA's employees, as well as the multiplier effect of MBSA's importance in the East London region.

The company on Tuesday also confirmed its decision to produce the next generation of C-Class vehicles at the East London plant.

“The investment is a sign of our commitment to South Africa and efforts to revive economic growth, as well as the socioeconomic development of the East London region,” commented Mercedes-Benz Cars production and supply chain board member Markus Schäfer.

President Cyril Ramaphosa welcomed the announcement, stating that a central priority for government this year has been to encourage significant new investment into the economy, which is necessary to realise economic growth, employment and reduce inequality.

South Africa is seeking to raise $100-billion in new investment over the next five years to create jobs and grow the economy.

This year marks the sixtieth anniversary of passenger vehicle production at MBSA’s East London plant.

Trade and Industry Minister Dr Rob Davies, Finance Minister Nhlanhla Nene and the Eastern Cape Premier Phumulo Masualle were also in attendance at Tuesday’s announcement.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION