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The South African economy has received a major boost with the Isuzu Motors purchase of the Struandale plant in Port Elizabeth. The Department of Trade and Industry said the launch of the plant will boost investor confidence in the country.

Last year, Isuzu announced it would purchase the light commercial vehicle operations in Port Elizabeth as well as the balance of shareholding in its Isuzu Trucks South Africa operations.

The Japanese manufacturer purchased the Struandale plant from General Motors which announced in May 2017 that it was disinvesting in South Africa.

In January 2018, Isuzu was consolidated into one business known as Isuzu Motors South Africa (IMSA). It will build Isuzu pick-ups and trucks.

Speaking at the launch of the plant Trade and Industry Minister Rob Davies said the investment by IMSA will save jobs.

“We know that this investment will mean that 1 000 jobs in the facility will be saved and there are 3 000 jobs in the direct supply chain and many thousands more in the supply companies. Jobs will continue to be guaranteed in the future,” said Minister Davies.

He added many major multinational firms use South Africa to source components and assemble vehicles for local and international markets.

“With its ability to link throughout the economy, government has identified the automotive industry as a key growth sector,” said the Minister.

The sector contributes 7.5 percent of South Africa's gross domestic product and employs about

113 000 people directly.