Peugeot
Global automotive giant Stellantis says the construction of its R3bn greenfield manufacturing plant at the Coega Special Economic Zone underlines the importance it places on Nelson Mandela Bay as an automotive manufacturing hub and gateway for it to build vehicles for export into the rest of Africa and the Middle East.
SA Managing Director Mike Whitfield was speaking at Nelson Mandela Bay Business Chamber’s inaugural “Bay of Opportunity Manufacturing Showcase” event on Thursday.
He told local leaders and captains of industry that their “project “ also underscored Stellantis’s philosophy of the circular economy; investing in the areas in which it operates, creating jobs, and stimulating the local economy.”
“The building of the plant is part of Stellantis’s Dare Forward 2030 strategy to produce a million units a year, with 70% localisation, and achieve 22% market share in the Middle East and Africa by 20230, in tandem with the existing Stellantis manufacturing operations in North Africa: in Morocco, Algeria, Tunisia, and Egypt,” he revealed.
Whitfield said construction is “scheduled to begin very shortly” and the Coega Development Corporation will prepare the 32.5 ha site, with construction expected to be completed by the end of 2025.
The progress of the project followed the conclusion of a joint venture agreement with the Industrial Development Corporation, which will be a 49% shareholder in the “project.”
Whitfield said in a statement that production of the PEUGEOT Landtrek 1-ton pick-up is scheduled to start in Q1 2026.
“The plant will directly employ 1,000 people and have an initial production target of 50,000 vehicles per year, but this will be scalable, said Whitfield, to a potential 90,000 vehicles per year, with the majority destined for export,” he said.
Whitfield said the plant will also be a testament to the enabling environment that the government and agencies like the Department of Trade, Industry and Competition, the Industrial Development Corporation, and the Coega Development Corporation had created.
“Investment in the automotive industry is a long-term process and there can be no investment of any nature without a legislative environment that ensures the playing fields are levelled, the interests of investors are protected, and a roadmap that guides all stakeholders,” he said.
