Construction on new Chinese auto plant at Coega imminent

Construction on a R200-
million commercial
vehicle assembly plant
for Chinese state-owned
vehicle manufacturer First
Automobile Works (FAW)
is due to start in November.
This follows a tender
process, according to Zhao
Dan, FAW project manager
for FAW Africa Investment.
“The successful bidder
has been requested to
finalise the construction
contract for this award.
FAW plans to sign
the agreement with
WBHO next month
and construction will
commence in November
2012. We are eager to turn
the investment into reality,”
he said.
The company’s
investment at the Coega
IDZ centred on the zone’s
strategic location, proximity
to the Port of Ngqura,
logistical solutions offering,
and the availability of skills
in Nelson Mandela Bay
and support mechanisms
offered by the CDC,
according to Dan.
Arnie Van Jaarsveldt,
managing director of
WBHO Construction
Eastern Cape, confirmed
that the award had been
formally received after
five months of a “rigorous”
bidding processes, both
in Port Elizabeth and in
Changchun, China, FAW’s
head office.
The truck plant, the
first phase of FAW’s
development in the Coega
IDZ, will be built on
400 000 sqm of land in
Zone 2 and is expected
to produce 5 000 trucks
annually, with an eye on the
African market.
Light commercials and
passenger cars assembly
are planned for the second
phase.