Immediate and ongoing employment is a key element of the plan by Stellantis to build a vehicle assembly plant in Coega that should be operational by 2026.
The company, which has in its stable Peugeot, Citroën, Opel and Jeep, 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 (the dtic).
“It is a wonderful day for all South Africans when a global company of Stellantis’ proportions decides to expand its manufacturing footprint in South Africa, to assemble completely knocked down units,” says Ebrahim Patel, Minister of Trade, Industry and Competition.
“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 look forward to welcoming Stellantis to South Africa and sharing in the detailed plan for employment and investment”.
“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 IDC, CDC and dtic teams,” says Samir Cherfan – Chief Operating Officer Stellantis Middle East and Africa. “This project reflects our focus and trust in South Africa as one of the most important markets in Africa & Middle East.
“It is also the execution of our Dare Forward 2030 Strategy to reach more than 22% Market Share in the region by 2030 with 70% regional localisation of our sales leading to upwards of 1-million units produced. We believe in South Africa and we intend to develop industrially and commercially bringing value to our customers”.
The manufacturing plant will be built in the South African Special Economic Zone (SEZ) in Coega situated near Gqeberha in the Eastern Cape. The greenfield manufacturing project is planned to be completed by the end of 2025.
The first launch planned for early 2026 is a 1-ton pick-up truck with volumes expected to reach up to 50 000 completely knocked down (CKD's) units annually including export, in line with the industry masterplan, known as the Automotive Production Development Program (APDP). The plant will be predisposed in terms of space and painting to go up to 90K units/year.
Just what bakkie that will be is unknown at this stage. Of the group brands, only Peugeor is a player in this with the Landtrek – so the factor opening may well tie in with the new Landtrek.
Direct employment to support the first capacity step is expected at 1 000 jobs. Stellantis will invest more than 500 000 hours in training and skills to develop and support the local teams to the level of global standards and is targeting a localisation of around 30%.
Colin Windell - proudly CHANGECARS
Caption:
Seated from left to right: Mr. Ebrahim Patel, Minister of Trade and Industry & Competition and Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer
Standing from left to right: Mr. Khwezi Tiya, Chief Executive Officer, Coega Development Corporation; Ms. Malebo Mabitje-Thompson, Acting Director General the dtic; Mr. Imran Sayed, Divisional Executive for Manufacturing IDC; Mr. Leslie Ramsoomar, Stellantis South Africa Managing Director
