SA, China in joint EC venture to manufacture vehicles

The first-ever BAIC vehicle assembled in Port Elizabeth was unveiled by President Cyril Ramaphosa and the President of the People’s Republic of China Xi Jinping at Coega in Nelson Mandela Bay yesterday.

The first vehicle sold from the plant will be in the fourth quarter and the X25 will be the first model sold.

The BAIC SA investment, one of the 26 bilateral agreements, with a total value of R94-billion, signed in 2015 between South Africa and China, is said to be the single largest investment in South Africa in 40 years.

Chinese delegates, automotive industry experts, Nelson Mandela Bay Mayor Athol Trollip , and Eastern Cape business leaders were among a large crowd who witnessed the occasion at the assembly plant located in the Coega Special Economic Zone.

The plant, officially launched in December 2015, will produce 100 units of the SKD car this year and 50 000 units annually on completion next year.

IDC chairperson Busi Mabuza said the world-class, technologically advanced facility would push the limits of innovation and was an investment that was expected to create around 2 500 jobs.

“Its an unavoidable fact that technology is going to govern where we live, where we work and how we play. And BRICS nations need to prepare and ensure that for the future and whatever opportunities are presented by the fourth industrial revolution," said Mabuza.

Over 1 540 jobs were created following the ground breaking ceremony of the BAIC plant in Coega in 2016.

Yesterday the automaker announced the completion of the construction and equipment installation for phase 1 at a cost of R11-billion.

"This phase of this plant alone has created over 1 400 jobs, and we expect to increase this number to about 2 500 at the completion of construction phase,” said Mabuza.

"It's no accident that this multi-million rand project is the largest greenfields project in the automation industry in over 40 years in this country. It will assist in the President’s vision of growth, jobs and transformation and will be a catalyst in the industry and broader economy,” Mabuza added.

“Motor vehicles that will be leaving this factory floor will have an amazing 60% local content in the form of components, and material that will be supplied by local manufacturers. This positions this plant as an immediate trend-setter in the automotive industry.”

BAIC international chairman Xu Heyi said the project would strengthen diplomatic relations between the two countries. He urged government to strengthen ties and build trust with the private sector.

"South Africa is a fertile land full of hope and dreams. This is an important opportunity to also deepen BRICS corporations,” said Heyi.

Speaking via live video Ramaphosa said: "We would like to congratulate you all in Coega and applaud you for the excellent work that you have achieved. It's really truly impressive and for us this is a big day and moment of celebration that finally BAIC has launched the first product.

“This is a confirmation of the working partnership between the People's Republic of China and South Africa that our corporation is a practical one based on solid corporation at an investment level.

“We are filled with pride to witness this historical moment. The whole of Africa is now open for you to produce all these vehicles and export them throughout Africa.”

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