SIGNIFYING a major boost for South Africa’s automotive sector, the Coega Development Corporation proudly announced a R200 million investment declaration by FAW Trucks South Africa.
Coega said the investment is a testament to FAW Trucks SA’s commitment to South Africa’s growth potential, particularly within the Eastern Cape, underscoring the potential for job creation, economic growth, and industrialisation.
The investment declaration was formalised at the Coega Business Centre in Gqeberha and was witnessed by the Premier of the Eastern Cape, Lubabalo Oscar Mabuyane, and dignitaries from the Jilin Provincial People’s Congress of China.
Mabuyane welcomed the investment by FAW, saying: “We welcome this investment by First Automotive Works. We believe that it is a good decision for the continent, and for relations between South Africa and China.”
This new investment comes a decade after FAW SA first established its R600 million assembly plant in Zone 2 of the Coega Special Economic Zone (SEZ), a facility spanning 30,000 sqm. Notably, FAW SA recently celebrated 30 successful years in the South African market, having established itself as a leader in the automotive sector and one of the largest investors from China in South Africa.
Strengthening South Africa-China relations
The R200 million investment by FAW SA not only solidifies the Eastern Cape’s position as a pivotal player in the automotive industry, but it also reflects the strong and growing relationship between South Africa and China. The visit by officials from Jilin Province aimed to strengthen bilateral ties, explore further investment opportunities, and encourage cultural exchange.
The Eastern Cape-China partnership holds immense potential for job creation, infrastructure development, and sustainable economic growth, and FAW SA’s renewed commitment exemplifies this shared vision for the future, according to Coega.
Themba Koza, acting chief executive officer of the Coega Development Corporation, commented on the investment: “We are thrilled to announce this investment declaration by FAW Trucks SA. It is a testament to the enduring partnership between our province and this esteemed global leader in automotive manufacturing.
“This investment not only strengthens the automotive sector in the Eastern Cape but also reaffirms Coega’s position as a prime destination for international investment.”
He continued: “FAW SA’s journey in South Africa has been remarkable, and we are proud to have supported their establishment in our Special Economic Zone over a decade ago. As we celebrate this milestone, we remain committed to fostering an environment that attracts further investments, creates jobs, and contributes to the sustainable development of our region.”
Peng Lei, FAW SA Coega SEZ assembly plant general manager, shared the company’s plans for the plant’s development. “We are planning to level up our productivity. We plan on extending our facilities and enlarging our storage area. In addition, we want to digitise our production and improve our training centres,” said Lei.
Investing in SA’s economy
This significant investment reaffirms Coega SEZ’s standing as a strategic hub for automotive manufacturing in South Africa. By driving job creation, economic stimulation, and attracting further investment, this partnership between Coega and FAW Trucks SA will contribute to the broader prosperity of the Eastern Cape and South Africa, Coega said.
