FAW on track to build second Coega plant

FIRST Automobile Works (FAW) is to open a second plant at Coega to manufacture cars.

The positive news for Nelson Mandela Bay came from heavyweights at the FAW headquarters in Isando, Johannesburg, yesterday during the launch of the latest mediumrange FAW truck addition.

The new six-speed, six-ton 3.8-litre 8.140FL – priced at R239 000 – will be the 12th vehicle of FAW’s South African fleet to be produced at Coega.

National sales executive Eugene van der Berg said FAW expected to produce about 1 000 vehicles annually at the Coega plant in the next financial year.

“FAW is to invest further into Coega. We are planning to build an additional plant there to manufacture cars,” Van der Berg said.

“At the new plant, we expect to produce about 30 000 passenger cars annually. With it, there will be job opportunities.

“However, I cannot say when and how much the plans would cost or when they will come into effect, at this time,” he said.

FAW chief executive Yusheng Zhang and his deputy, Jianyu Hao, all painted a rosy picture of positive investment destined for the South African automotive market.

Zhang praised FAW’s existing plant at Coega, saying it had allowed the company access to Southern Africa, which had been a challenge before.

“Since we came to South Africa, in 1994, we have made remarkable progress – especially following the establishment of our plant at Coega.”

However, FAW executive director Richard Leiter said the company had been struggling with exports and imports.

“Last year alone FAW China exported about 10 000 vehicles to different areas of Africa, whereas we have only managed to export about 1 000 from South Africa to the rest of Africa.”

“The reason is because it is simply too expensive to import and export goods through South Africa.

“However, it is something we are working on with stakeholders within South Africa to change and hopefully improve on in the future,” Leiter said.