The Stellantis motor group has confirmed its intention to develop a greenfield manufacturing facility in the Coega Special Economics Zone in the Eastern Cape.
This was announced on Wednesday, by the Department of Trade, Industry and Competitions, following the signing of an investment agreement with the Industrial Development Corporation and Stellantis Middle East and Africa CEO, Samir Cherfan.
The development is expected to create about 1800 jobs in Nelson Mandela Bay and surrounds and 2 097 in the Eastern Cape.
Minister of Trade and Industry, Ebrahim Patel welcomed Stellanti's decision to expand its manufacturing footprint in South Africa.
“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 investment," he said.
Cherfan said they were delighted with the speed at which the project is progressing.“This project reflects our focus and trust in South Africa as one of the most important markets in Africa & Middle East.
"It is also the execution of our Dare Forward 2030 Strategy to reach over 22% Market Share in the region by 2030 with 70% regional localization of our sales leading to over 1 million units produced.
"We believe in South Africa and we intend to develop industrially and commercially bringing value to our customers”.
Khwezi Tiya, CEO the CDC said: “This is a much-needed and welcomed economic boost for the Eastern Cape Province with an anticipated economy-wide impact on the province’s GDP of R 664 million.
"Household income is anticipated to increase to R558.4 million within the Nelson Mandela Bay Municipality (NMBM) and R577.4 million for the entire Province."
The greenfield manufacturing project is planned to be completed by the end of 2025.
The first launch planned for 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 90 000 units per year.
Stellantis will be investing over 500 000 hours in training and skills to develop and support the local teams to the level of global standards.
