Stellantis invests ZAR 3 billion ($158m)in South Africa, establishing automotive plant in Coega, South Africa.
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Stellantis has confirmed its intention to develop a greenfield manufacturing facility in Coega in South Africa with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (the dtic).
Minister Ebrahim Patel, senior officials from the IDC and Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer met at the Parliament Buildings in Cape Town to agree on investment in the South African motor industry.
“It is a wonderful day for all South Africans when a global company of Stellantis’ proportions decides to expand its manufacturing footprint in South Africa, to assemble completely knocked down units,†said Mr. Ebrahim Patel, Minister of Trade, Industry and Competition.
“South Africa currently has the capacity to produce close to 700 000 vehicles annually. This will add considerable additional capacity, just as we prepare to implement the African Continental Free Trade Area.
"The country remains a great investment destination and this commitment from Stellantis to invest in our local motor industry highlights the success of our manufacturing sector policy, its capability and potential.
"We look forward to welcoming Stellantis to South Africa and sharing in the detailed plan for employment and investmentâ€.
The manufacturing plant will be built in the South African Special Economic Zone (SEZ) in Coega situated near Gqeberha in the Eastern Cape province of South Africa.
The greenfield manufacturing project is planned to complete by the end of 2025.
The first launch planned early 2026 is a 1 T pick-up truck with volumes expected to reach up to 50,000 completely knocked down (CKD's) units annually including export, in line with the industry masterplan, known as the Automotive Production Development Program (APDP).
The plant will be predisposed in terms of space and painting to go up to 90K units / year.
Direct employment to support the first capacity step is expected at 1000 jobs.
Stellantis will be massively investing in over 500 000 hours in training and skills to develop and support the local teams to the level of global standards. We are targeting a localization rate over 30%. ■