Work at BAIC plant likely to resume

Work at Beijing Automobile International Corporation (BAIC), the Chinese car manufacturing plant in Port Elizabeth that was officially opened by President Cyril Ramaphosa and his counterpart, Xi Jinping, in July, is expected to resume this week after contractors downed tools over unpaid bills.

Work at Beijing Automobile International Corporation (BAIC) SA, the new Chinese car manufacturing plant in Port Elizabeth that was officially opened by President Cyril Ramaphosa and his counterpart, Xi Jinping, in July, is expected to resume this week after contractors downed tools over unpaid bills.

Production was hampered for nearly three weeks at the R11bn factory in the Coega special economic zone.

BAIC SA is a joint venture between China’s BAIC Group, which holds 65%, and SA’s Industrial Development Corporation (IDC), with 35%.

It was launched with much fanfare during a sod-turning ceremony in 2016 but has been dogged by work stoppages.

In the latest dispute, Scribante, WBHO and Ivor Smith Electrical suspended work on August 31, claiming their payment has been withheld since July, City Press reported on Sunday. Scribante is allegedly owed R31m and Ivor Smith more than R1m. WBHO is owed millions of rand, it reported.

But BAIC spokesperson Mandla Mpangase told Business Day that the dispute is over work certificates rather than outstanding money. Mpangase, also the IDC’s spokesperson, said the dispute is with Scribante and WBHO, which he said are the only two contractors that have stopped work.

Late last week BAIC SA met with the site manager, Beijing Industrial Design and Research Institute, which had appointed the principal contractors. An agreement was reached to resolve the dispute and pay the subcontractors that had suspended work.

“They will be paid and work will resume, hopefully this coming week,” Mpangase said.

The plant is expected to have an initial annual capacity of 50,000 units. Most of the vehicles will be exported to African countries, the Middle East and Latin America; about 40% will be sold locally.