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Stellantis to Invest R3bn in New Manufacturing Facility in South Africa

Published September 21, 2023
9 months ago

The Stellantis motor group has officially declared its plans to establish a greenfield manufacturing facility in South Africa's Coega Special Economic Zone, located in the Eastern Cape. The Department of Trade, Industry, and Competitions revealed this development recently after solidifying an investment contract with the Industrial Development Corporation, alongside Samir Cherfan, CEO of Stellantis Middle East and Africa.

The project is projected to generate about 1,800 jobs within Nelson Mandela Bay and its surrounding areas, and a further 2,097 in the larger Eastern Cape region, providing a significant upliftment to a severely job-stricken province.

Ebrahim Patel, the Minister of Trade and Industry, acknowledged Stellantis's decision to expand its industrial footprint in South Africa. He iterated that the country, already capable of producing nearly 700,000 vehicles annually, will see a significant surge in capacity following the new development. Moreover, it aligns perfectly with the implementation of the African Continental Free Trade Area.

The greenfield manufacturing project is expected to be operational by the end of 2025, with the aim of launching its first product, a 1 T pick-up truck, in early 2026. The production volume is likely to increase to 50,000 completely knocked down (CKD's) units annually, contributing significantly to the sector's masterplan, famously known as the Automotive Production Development Program (APDP).

Stellantis will also invest over half a million hours in training and skill development of local teams, bringing them up to international standards.

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