IDC support for Localisation
A R200 million investment by the Industrial Development Corporation (IDC) in a joint venture with the Beijing Automobile Works (BAW) in a mini bus assembly plant is being considered as an automotive revolution.
Speaking at the the launch, John Jessup, Head of Sales and Marketing at BAW South Africa (pictured right) says, "This enterprise brings with it new job creation and attractive product offerings in all major market segments, starting with the taxi industry where we will be establishing many firsts in terms of servicing, financing and professional factory refurbishing."
South African Minister of Economic Development, Ebrahim Patel, who opened the plant in New Era in Springs said this was an example of the import substitution program saying that the re-industrialisation of South Africa depends on the wealth generating sectors of mininig, agriculture and manufacturing.
The assembly plant will start production in January 2013. Taxis will be produced on a semi knock-down basis and the plant will be developed into a full manufacturing plant for busses and trucks.
Beneficiation of the iron-ore resources will see a complete localised product.