Huge investment from Stellantis in new EC plant

Stellantis made a huge investment in South Africa with the announcement of establishing a state-of-the-art plant in Coega in the Eastern Cape.

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The investment of R3 billion will not only stimulate economic growth in the province but will also create new job opportunities.

Stellantis has confirmed its intention to develop a greenfield manufacturing facility in Coega in South Africa with the Industrial Development Corporation (IDC) and the Department of Trade, Industry and Competition (dtic).

Minister Ebrahim Patel, senior officials from the IDC and Samir Cherfan (Stellantis Middle East and Africa Chief Operating Officer) met at the Parliament Buildings in Cape Town to agree on investment in the South African motor industry.

“It is a wonderful day for all South Africans when a global company of Stellantis’s proportions decides to expand its manufacturing footprint in South Africa, to assemble completely knocked down units,” Ebrahim Patel, Minister of Trade, Industry and Competition (dtic), reckons.

Seated are Ebrahim Patel (Minister of Trade and Industry & Competition) and Samir Cherfan (Stellantis Middle East and Africa Chief Operating Officer). Standing are Khwezi Tiya (Chief Executive Officer Coega Development Corporation), Malebo Mabitje-Thompson (Acting Director General dtic), Imran Sayed (Divisional Executive for Manufacturing IDC) and Leslie Ramsoomar (Stellantis South Africa Managing Director).

“South Africa currently has the capacity to produce close to 700 000 vehicles annually. This will add considerable additional capacity, just as we prepare to implement the African Continental Free Trade Area. The country remains a great investment destination, and this commitment from Stellantis to invest in our local motor industry highlights the success of our manufacturing sector policy, its capability and potential.”

“We are delighted with the speed at which we are progressing on this project, thanks to the commitment of Minister Patel and the great collaboration with teams from the IDC, CDC and dtic,” commented Samir Cherfan, Chief Operating Officer Stellantis Middle East and Africa.

He added: “This project reflects our focus and trust in South Africa as one of the most important markets in Africa & the Middle East. It is also the execution of our Dare Forward 2030 Strategy to reach over 22% Market Share in the region by 2030 with 70% regional localisation of our sales leading to over 1 million units produced.”

The manufacturing plant will be built in the South African Special Economic Zone (SEZ) in Coega situated near Gqeberha in the Eastern Cape province of South Africa. The greenfield manufacturing project is planned for completion by the end of 2025.

The first launch planned early 2026 is a 1 ton pick-up truck with volumes expected to reach up to 50 000 completely knocked down (CKDs) units annually, including exports, in line with the industry masterplan, known as the Automotive Production Development Programme (APDP). The plant will be predisposed in terms of space and painting to go up to 90K units a year.

Direct employment to support the first capacity step is expected to be 1 000 jobs. Stellantis will be massively investing in over 500 000 hours in training and skills to develop and support the local teams to the level of global standards.

“The Coega Development Corporation (CDC) is overjoyed that Stellantis has chosen the proposed site in Coega for its Southern African manufacturing operations. Joining other major manufacturers in the area makes the Coega region the primary automotive hub in the country.

“The investment in the plant, employment, training and skills transfer will certainly benefit the region tremendously. This is a much needed and welcomed economic boost for the Eastern Cape Province with an anticipated economy-wide impact on the province’s GDP of R664 million. Household income is anticipated to increase to R558.4 million within the Nelson Mandela Bay Municipality (NMBM) and R577.4 million for the entire province. Most importantly, an anticipated 1 800 jobs will be created in the Metro and around 2 097 for the Eastern Cape,” says Khwezi Tiya, CEO of the CDC.

Stellantis continues to work closely with the IDC in developing a viable joint venture (JV) partnership that will be evaluated by appropriate credit committees. “Stellantis’s success with similar manufacturing plants around the world is well-known, and our planned JV with Stellantis to build another greenfield plant in South Africa is progressing well,” says TP Nchocho, CEO of the IDC.

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