Published By : 07 Dec 2015 | Published By : QYRESEARCH
Beijing Automobile International Corporation (BAIC), the fifth-largest carmaker in China will be investing R11 bn in a vehicle manufacturing unit in South Africa, which falls in the completely knocked down class.
The investment from the Chinese carmaker comes after BMW announced last month that it will make an investment of R6 bn in South Africa, for which the luxury carmaker has awarded a contract to its Pretoria plant located in Rosslyn for the production of BMW X3, both for domestic and export markets.
As stated by the business development manager at BAIC Investments, the company would make an investments of R11 bn in the vehicle manufacturing unit in South Africa, though, he indicated that a the location of the plant is not yet confirmed.
The executive further stated, that the plant might be located in Durban Port Elizabeth, or East London. He further stated that the maximum capacity of the plant is slated to be 100 000 units annually and the production would commence by the end of 2017.
The business development executive stated that the investment for the plant would be funded jointly by the Industrial Development Corporation (IDC) and BAIC, with the remainder of the funding coming from other unnamed financers. However, the executive declined to provide further details regarding the funding. In this regard, an attempt to gather comment from the IDC could not happen.
The business executive cut short his interview with Business Report, giving the reason that he was busy and the reporter should call again in a few days. BAIC’s business development executive further added that he would not be able to furnish more details about the project at the moment, as the agreement was recently signed and that he needed time to work on the details of the operation of the project.