A Chinese automotive company has partnered with the Industrial Development Corporation to establish the country's first light vehicle manufacturer in more than 40 years.
Beijing Automotive Industry Holdings has invested R196m in South Africa in a joint venture with the IDC and China Africa Motors to establish BAW South Africa.
BAIC, via its BAW subsidiary, has a 51% shareholding in the company with the two partners holding the balance.
BAW's head of sales and marketing, John Jessup.
"This is the first light vehicle factory in 40 years. It is initially what we call an SKD operation that is going to be building minibus taxi's. The main shareholder is the 4th biggest Chinese auto company that also do Mercedez Benz and a company called DAW in China" Jessup said.
Meanwhile, Jessup says in the coming months BAW South Africa will create just under 300 new jobs in the factory in Springs.
He says more jobs will also be created in the dealer and supply networks.
But, Jessup told Algoa FM News, that in 2 years time they will move to full manufacturing with an investment of R2-billion rand, which could come to the Eastern Cape.
"We are going to be talking about thousands of jobs created, because that is full manufacturing and they will have to relocate from Springs, because our factory there will not be big enough, but it's early days and we are talking to people in the Eastern Cape and Gauteng for that location, but no decision yet" Jessup said.
