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Manufacturing & Parts South Africa

World’s third-biggest automaker to establish new factory in SA soon

Stellantis has announced that the final building blocks for its automotive manufacturing site in South Africa have been laid, paving the way for construction to begin shortly at the Coega Special Economic Zone (SEZ) in Gqeberha, Nelson Mandela Bay the Eastern Cape.
Source: Unsplash

Stellantis, the world’s third-biggest automotive manufacturer by volume, and South Africa’s largest development funder, the Industrial Development Corporation (IDC) have concluded key milestones that will lead to a joint venture (JV).

The investment estimated at R3bn is expected to facilitate the creation of massive employment opportunities in the Eastern Cape.

The Coega Development Corporation (CDC), which is 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.

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.

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,” said Ebrahim Patel, Minister of Trade, Industry and Competition.

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

“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, he said. “We have had numerous requests to support the automotive sector in Coega and to rapidly grow our planned supplier park.”

The Stellantis Greenfield project in brief:

  • It will be built in a South African Special Economic Zone (SEZ) in Coega, situated near Gqeberha in the Eastern Cape province of South Africa
  • Construction will be completed by the end of 2025
  • A high level of localization is targeted at launch (35%)
  • Ultimate production volume of 50,000 units a year, with the majority destined for export
  • 1,000 new jobs to be created directly
  • Thousands of hours to be invested in training to develop local teams to global standards
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