By Terri-Ann Brouwers.
Coega Development Corporation has announced a substantial R200 million investment by FAW Trucks South Africa, noting its significance for the automotive sector.
According to Asanda Xawuka, executive manager for business development at the corporation, the investment injection is intended to expand FAW SA’s existing plant to increase production capacity from 5 000 to 8 000 units per annum.
“Thus, the investment will cover plant and equipment, some building expansion and mostly training and development, as in the past, FAW [is] reported to have trained about 2 500 people,” Xawuka said.
Strengthening bilateral relations
The official declaration took place on Monday at the Coega Business Centre in Gqeberha. Eastern Cape Premier Oscar Mabuyane praised the investment as a key development for the province and a positive stride in South Africa-China relations.
“We welcome this investment by First Automotive Works [FAW]. We believe that it is a good decision for the continent, and for relations between South Africa and China,” he said.
FAW SA recently celebrated 30 years in the South African market, underscoring its impact as one of the largest Chinese investors in SA’s automotive industry.
The latest financial commitment builds on its decade-long presence in the Coega Special Economic Zone (SEZ), where it initially established a R600 million assembly plant covering 30 000m².
Auto sector to benefit
The corporation emphasised that FAW SA’s latest commitment strengthens the Eastern Cape’s automotive industry.
“The benefit for the automotive sector involves enhancing the availability of skilled personnel. As production volume increases, opportunities to supply certain components locally would be created, therefore benefiting either current auto suppliers or others, which would be preferred by FAW,” Xawuka said.
Officials from the Jilin Provincial People’s Congress of China, who were present at the announcement, also highlighted the potential for job creation, infrastructure development, and cultural exchange.
The partnership is said to align with Coega’s broader economic objectives.
“This investment strengthens the automotive sector in the Eastern Cape and reaffirms Coega’s status as a prime destination for international investment,” said Coega acting CEO Themba Koza.
“We are proud to have supported FAW SA’s establishment here over a decade ago, “he added, noting Coega’s commitment to fostering further investments that drive sustainable regional development.
Peng Lei, GM of the FAW SA assembly plant at the Coega SEZ, provided insights on future development plans – which include expanding production facilities, enhancing storage, and digitalising manufacturing processes to increase productivity.