BEIJING Automotive International Corp has signed a deal with the Coega Development Corporation that runs an industrial zone in Port Elizabeth, South Africa, to set up a US$819 million auto assembly plant.
South Africa's automotive-manufacturing industry is a bright spot of the economy, which is expanding at its slowest pace since the 2009 recession, noted Bloomberg.
South Africa's government auto-incentive programme has attracted companies including Toyota, Ford and BMW to set up and invest in auto plants.
The industry has the potential to boost production by almost 50 per cent to more than 900,000 vehicles a year by 2020, the local producers' group said in May.
The investment is a result of agreements signed by South African President Jacob Zuma and Chinese President Xi Jinping in December last year.
"The size of this investment demonstrates confidence by China and confidence in South Africa as an investment destination," said South African Trade and Industry Minister Rob Davies.
Eastern Cape province is "an automotive hub and has the potential of deepening the component supply chain, job creation and economic development," he said.
Source : HKSG.