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Stellantis to establish new factory in South Africa soon through ‘Greenfield Project’

IFM_Stellantis
The impending construction of the Stellantis factory has acted as a catalyst for other investors

Stellantis, the world’s third largest automaker by volume, has announced that the final building blocks for its automotive manufacturing site in South Africa have been laid, thereby paving the way for the inception of construction works at the Coega Special Economic Zone (SEZ) in Gqeberha, Nelson Mandela Bay the Eastern Cape.

Stellantis and South Africa’s largest development funder, the Industrial Development Corporation (IDC) have also concluded key milestones that will lead to the creation of a joint venture, reported Bizcommunity.com.

The investment, estimated at three billion rand, is expected to facilitate the creation of massive employment opportunities in the Eastern Cape. The Coega Development Corporation (CDC), which is reportedly supplying the ground on which the factory will be built, has begun preparing the site for the start of construction.

“I welcome the progress made with concluding all modalities with Stellantis that will enable construction to commence this year and the start of production of a new auto model to roll off the assembly line by the end of 2025,” stated Ebrahim Patel, Minister of Trade, Industry and Competition.

“The SA auto industry is Africa’s largest producer of cars, bakkies and trucks and this new investment by Stellantis will consolidate the country’s position, helping us to achieve the goal of producing 1.4 million vehicles by 2035,” Patel continued further, while adding, “The biggest attractions for new investors are the size of the domestic market together with the auto industry masterplan, which supports local production for both South Africa and export markets. Stellantis has a strong growth vision with an excellent range of vehicles in its global stable and we look forward through this investment to increasing the range of locally manufactured cars available to motorists.”

“All fauna and flora have been successfully removed from the site and rehomed as per the environmental impact study conducted by Coega,” the minister noted.

“Coega is focused on delivering the finest plant for Stellantis, reinforcing the Coega SEZ as an automotive hub in the country, in line with its vision to be the leading catalyst for the championing of socio-economic development,” said Coega acting CEO Themba Koza.

“The impending construction of the Stellantis factory has acted as a catalyst to other investors. We have had numerous requests to support the automotive sector in Coega and to rapidly grow our planned supplier park,” he said further.

The Stellantis Greenfield project, which will be completed by 2025 end, will have a high level of localization (35%) during its launch, along with a yearly production volume of 50,000 units. Also, some 1000 new jobs will be created in the process, while the stakeholders will invest thousands of hours in training to develop local teams to global standards.

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