BAIC construction site at Coega reopened

AN agreement has been reached between the Beijing Automotive Group (BAIC) and six small businesses that shut down the automotive company’s construction site in Coega last week.

Industrial Development Corporation (IDC) spokesman Mandla Mpangase said the site reopened yesterday.

“With the continued engagement we agreed with the SMMEs to open it.”

The site was closed on Thursday following a protest by a section of the SMMEs which claimed irregularities with the tender process.

In April last year, the automotive group announced its R11-billion investment and expected production of 100 000 vehicles a year, with production scheduled to start next year.

African Chamber of Business president Luvuyo Popo said the SMMEs called off the shutdown following a meeting with the IDC on Friday.

“The reason we decided to reopen the site is because we realise this investment is for our people. We have a high rate of unemployment in the metro and the participation of the SMMEs could result in lots of job creation.

“We have nothing against white companies but they must be BEE compliant in terms of the government legislation,” Popo said.

He said BAIC had agreed to look into the grievances raised by SMMEs while the process of engagement between the two parties was ongoing.