Mercedes-Benz South Africa has announced that it will produce the next generation of the C-Class in East London and expand the plant with an investment of 600 Million Euro (close on R10 billion).
This includes the construction of a new paint shop and a new body shop, an upgrade of the assembly shop and new logistic warehouses.
MBSA said in a statement that new buildings comprise an area of approximately 100.000 sqm, reflecting an addition of two-thirds to the existing buildings for passenger vehicle production.
'The new workshops will incorporate environmentally friendly and state of the art technologies."
“With the investment of 600 Million Euro we are significantly expanding our plant in East London and equipping it for the future," said Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain.
"The decision to have the new generation of the C-Class built in East London re-affirms the plant and Mercedes Benz South Africa. The investment is also a sign of our commitment to South Africa and efforts to revive economic growth as well as the socio-economic development of the East London region,” he said.
He was speaking on Tuesday during the visit by President Cyril Ramaphosa to the Mercedes-Benz plant in East London.
Commenting on the investment by Mercedes-Benz Cars, President Ramaphosa stated: “A central priority for the government this year has been to encourage significant new investment in our economy, necessary to realise economic growth, employment and reduce inequality."
"The announcement by Mercedes-Benz Cars to inject R10 billion in the South African economy signals to the positive momentum we are making to realise the ambitious target of raising R1.2 trillion in new investment," he said.
"This investment by Mercedes-Benz Cars endorses South Africa as a favourable destination for investment; and correspondingly, demonstrates our determination to work with all social partners to seize the opportunities that are opening up for greater investment and faster growth.”
MBSA said 2018 marks the 60th anniversary of Mercedes-Benz passenger vehicle production at the East London plant.
"The investment of 600 million Euro will be used for a wide expansion of the plant. Many different parts of the plant are affected by the expansion," the company said.
"The new body shop is designed for higher capacities. 700 tons of steel will be installed for the addition of three lines in the assembly shop. Utilizing new methods, the new paint shop will be more energy efficient and more environmental friendly."
