BAIC to build 5 billion yuan assembly plant in South Africa
BAIC Motor Co. will build a plant in Port Elizabeth, South Africa, to produce up to 100,000 vehicles a year as part of its plan to ease dependence on its home market, the state-owned China Daily reported.
Construction of the 5 billion yuan ($773 million) factory will start next month, with production scheduled to begin in November 2017. According to China Daily, the plant will employ 2,500 people.
The factory will be run by a joint venture between BAIC and South Africa's Industrial Development Corp.
Earlier press reports in Africa described the project as a complete knockdown operation. But IHS Automotive's Supplier Business newsletter speculates that it could be closer to a full-scale assembly plant, given the size of the investment.
State-owned BAIC already has a presence in South Africa. In 2013, the company opened a small semi-knockdown plant in the town of Springs to build minibus taxis.
The Port Elizabeth project is part of a larger effort by BAIC to establish a global presence. According to China Daily, the company will rely on exports and overseas production to boost annual foreign sales to 300,000 vehicles by 2020.
The factory will be run by a joint venture between BAIC and South Africa's Industrial Development Corp.
Earlier press reports in Africa described the project as a complete knockdown operation. But IHS Automotive's Supplier Business newsletter speculates that it could be closer to a full-scale assembly plant, given the size of the investment.
State-owned BAIC already has a presence in South Africa. In 2013, the company opened a small semi-knockdown plant in the town of Springs to build minibus taxis.
The Port Elizabeth project is part of a larger effort by BAIC to establish a global presence. According to China Daily, the company will rely on exports and overseas production to boost annual foreign sales to 300,000 vehicles by 2020.
