German company Benteler Automotive said site works of the high-tech 20 000m² factory at the park, on the Bethelsdorp road from Uitenhage, had begun.
First equipment would be installed in March and the building and installation of equipment completed in June, with production of its steel components to world-class specification beginning immediately.
Benteler SA managing director Luis Madaleno said the factory - the largest at the growing industrial park - would create 450 jobs during the construction phase and 250 permanent jobs.
The company's chairman, Hubertus Benteler, said the decision to build the Uitenhage factory had been based on the group's international philosophy of being close to vehicle manufacturers to which it supplied components.
In this case, Volkswagen SA was adjacent to Benteler, while other manufacturers were close by or in East London.
Another reason for the choice was that the terms of the agreement with the Coega Development Corporation (CDC) - under whose industrial development zone (IDZ) the Uitenhage park falls - had been extremely favourable.
“We are so happy, in fact, that we have signed the deal and that's why we're here today,” said Benteler, who travelled from Germany to attend Sunday's announcement.
The company employs nearly 25 000 people at 150 locations in 35 countries. Among its existing operations is one at Alberton in Gauteng.
Welcoming the announcement of the ninth investor in the logistics park, Volkswagen SA managing director David Powels said attracting the Benteler factory was a key part of an important VWSA strategy - that being to increase the local content of vehicles manufactured for both the domestic and export markets.
“The company's all-out initiative is to achieve 70% local content in its Uitenhage-produced vehicles,” Powels said.
The increase from the present 40% would be achieved within 18 months.
He has voiced deep concerns about the survival of the domestic vehicle manufacturing sector unless high volumes of world-class, cost- competitive local content are achieved urgently.
“In addition to the local content benefits Benteler's investment brings to VWSA, it is also beneficial to the region due to the skills transfer that will take place from a multinational company.”
Benteler SA head Madaleno said locating the new plant in Mandela Bay “not only benefits the company, as we can tap into the skilled workforce in the area, but we'll also contribute to the development of the metro and the province”.
On top of that, Madaleno said, the newly opened Port of Ngqura “will provide the ideal base from which to export”.
CDC chief executive Pepi Silinga said 25 companies had invested in the Coega IDZ and the Uitenhage logistics park.
Source: The Herald
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