Chinese vehicle manufacturer First Automobile Works (FAW) is planning to build a new ZAR200m ($23.7m) vehicle and truck assembly plant in Coega Industrial Development Zone (IDZ) in South Africa.
FAW has selected WBHO Construction as its contractor to design and construct the new vehicle and truck assembly plant.
According to the company, the new plant will provide employment to over 1‚000 people during the construction phase‚ which will start in November and is expected to be completed by December 2013.
In addition, the company along with a joint funding provided by FAW and China-Africa Fund will invest about $73.2m in the Coega IDZ that will be used for the zone's strategic location‚ proximity to the Port of Ngqura‚ logistical applications offering and the availability of skills in Nelson Mandela Bay and support mechanisms offered by the CDC.
FAW Africa Investment project manager Zhao Dan said the company looked forward to cooperating with the CDC and WBHO Construction in delivering the FAW plant and commencing production.
"FAW plans to sign the agreement with WBHO in October 2012 and construction will commence in November 2012," Zhao Dan said.
CDC Marketing and Communications head Ayanda Vilakazi said Coega welcomes the appointment of WBHO Construction as this reconfirms that FAW is here to stay.
"This is big news for the Eastern Cape‚ but particularly Nelson Mandela Bay because of the huge economic spinoffs for the city‚" Vilakazi said.
"Moreover it emphasizes the fact that a number of BRIC countries‚ China and India in particular‚ are watching South Africa with interest and are not afraid to match intention with investment."
