Chinese automaker, Beijing Automobile International Corporation, said that its R11bn investment in the Coega IDZ remained on track.
The company issued the assurance amid reports that SMME’s were unhappy with the allocation of work to them.
In statement on Tuesday, BAIC, said that “more than 35% of the R800 million building works budget has been allocated to SMMEs to ensure meaningful and impactful participation of SMMEs in the greater Nelson Mandela Bay Metro.”
“Project contractor, Beijing Industrial Designing and Researching Institute (BIDR), says 80 to 85% of the procurement value for the civil building works will be from South African companies. And 15 to 30% of the procurement value for the plant will be from South African suppliers,” the company said.
BAIC said that SMMEs in the construction sector in the Nelson Mandela Bay Metro are encouraged to register on the BIDR procurement database
BAIC said that its South African vehicle assembly plant, which will be implemented in two phase, will comprise an assembly shop, paint shop, office block, energy centre and sewage treatment works.
“The first phase will have installed capacity to assemble up to 50,000 units per annum. This number is expected to double at full capacity in the second phase,” said BAIC SA senior manager, Sun Tongli.
He said phase one is anticipated to be completed in the second quarter of 2018. Around two-thirds of the production is earmarked for the export market.
“The vehicle will include passenger cars, sport utility vehicles, light commercial vehicles and pick-ups both for domestic and export markets.”
"Once operational, the project will create about 800 direct jobs", Tongli said.
