THE Coega Development Corporation shared a progress update on the R3 billion Stellantis automotive manufacturing facility project located in the Coega Special Economic Zone (SEZ). Initially announced in September 2023, this landmark investment is set to generate a wealth of job opportunities and bolster economic growth in the Eastern Cape region.
This progress announcement follows recent milestones for Coega, including a R200 million investment declaration by FAW Trucks South Africa and a Memorandum of Understanding with the Automotive Industry Development Centre Gauteng to enhance sector-specific skills development and supplier localisation, solidifying the SEZ as an automotive hub.
The Stellantis project site, located on 32 hectares of land in Zone 2 of the Coega SEZ, has been cleared and the development of the building platform is underway. This will be followed by the appointment of the main contractor for the top structure, once all conditions have been met, including the registration of the South African entity or JV company by Stellantis.
Coega executive manager of business development, Asanda Xawuka, confirms that all regulatory approvals have been received, inclusive of the Department of Employment and Labour (DEL) construction work permits and Site Development Plan (SDP) approvals from the local municipality.
“The project is receiving support from the Department of Trade, Industry and Competition (DTIC); hence service providers have been appointed as mentioned above, with funding duly approved by the DTIC earlier this year. Other conditions yet to be fulfilled include the finalisation and registration of the JV company and conclusion of agreements between the JV partners and newly registered company and Coega,” says Xawuka.
Coega continues to work closely with Stellantis and relevant stakeholders to ensure the successful execution of the project. The establishment of this manufacturing facility will create jobs, stimulate economic growth, and position South Africa as a global automotive hub.
“A project team with all relevant parties including the client has scheduled meetings to monitor project progress. The project team continues to ensure that the project is executed successfully, and that South Africa derives value from the investment,” says Xawuka.
Through strategic partnerships and a commitment to driving socio-economic development, Coega says it is poised to become a leading automotive hub, driving economic growth, and creating sustainable jobs.
