The investment by five component manufacturers would create 685 highly skilled new jobs in the city “with upside potential in coming months”, said Volkswagen SA managing director David Powels.
All the suppliers will be producing components for, among other models, the new VW Polo, which is to be exported as well as sold on the domestic market.
Empowerment company Flextech chief executive Hassiem Salie said the opening of the company facility at the Nelson Mandela Bay Logistics Park showed a “commitment to improve the lives of people in the region”.
The company already has a plant in Pretoria, but that is to be moved to Uitenhage.
Salie said the company's current national employment strength was 156.
It was recruiting 12 additional staff members, with 28 more likely to be employed within the next 12 to 18 months.
Flextech's initial R1-million investment would increase by a further R2-million when its full manufacturing process and assembly of mirrors was moved from Pretoria to Uitenhage. “This will occur within the next 12 to 18 months,” Salie said.
The company was currently leasing premises from the Coega Development Corporation (CDC), he said.
The new logistics park is part of the CDC's industrial development zone and has also been funded with the help of the Industrial Development Corporation and the provincial administration.
The biggest investor in the park at present is Rehau Polymer, which has created 100 full-time jobs.
There are plans to increase this figure to 130 in the near future.
“The investment into the plant totals R220-million, with the size of the facility under roof making up some 13500m²,” said production manager Dr Thomas Siggenauer.
Meanwhile, Faurecia has invested more than R87-million to manufacture dashboards, door panels and various other plastic components for Volkswagen's new range of Polo vehicles.
Its new plant was among those officially inaugurated by Economic Development MEC Mcebisi Jonas.
Faurecia regional vice-president Brendan Drummond said the opening was “a significant milestone in the company's South African development”.
The move “changes the entire business model from previously importing finished instrument panels or at best importing boxes of sub-components for local assembly only”, Drummond said.
He added that the company had created 140 new jobs which otherwise would have remained largely in Eastern Europe or elsewhere in the world.
Spanish multi-national Grupo Antolin said it had invested R100-million in its of 5500m² plant and employed 124 people there.
Grupo Antolin SA chief executive Riaan Goosen said the investment had been made because of the group's confidence in the future of the automotive industry in South Africa.
German company Benteler Automotive is the latest investor in the park, with work on its 20000m² plant now under way.
It is building a R178-million factory that will create 450 jobs during construction and 250 permanent jobs.
The building and installation of equipment would be completed next June.
Source: The Herald
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