The ground is being cleared for the construction of a new ZAR3 billion vehicle manufacturing facility near Gqeberha in South Africa’s Eastern Cape province.

The project – an as-yet-to-be-named joint venture between global vehicle manufacturer Stellantis and South African funder the Industrial Development Corporation (IDC) – will be built in the Coega Special Economic Zone (SEZ), according to Moneyweb. IOL reports that the first of the Peugeot Landtrek one-ton bakkies is expected to roll off the assembly line in 2025.

IDC interim CEO David Jarvis notes that the new company that will house the JV ‘is on track to be registered’.

 ‘The construction of this plant is critical to Stellantis’ Dare Forward 2030 strategy,’ says Stellantis Middle East Africa COO Samir Cherfan.

He adds that Stellantis, whose marques include Jeep, Maserati and Peugot, is aiming to produce 1 million units in the MEA by 2030 as part of its goal to garner a 22% market share in the region.

‘Our medium- to long-term objective is to ensure that 90% of vehicles sold in the MEA region are sourced from our production plants in this region,’ he says.

Coega acting CEO Themba Koza notes all the fauna and flora has been cleared from the site and relocated according to environmental assessment guidelines.

He says the Stellantis plant will reinforce ‘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’.

21 May 2024
Image: Stellantis