Toyota SA announces R363 million investment

The warehouse, which will employ over 800 people and be located in Ekurhuleni in Gauteng, will serve the car manufacturer's local and export markets.

"The development of a distribution warehouse of this size and scale is one of the clearest signs that we are committed to South Africa and intent on remaining South Africa's most popular vehicle manufacturer," president and CEO of Toyota South Africa Motors Dr. Johan van Zyl said.

Two stage process

The warehouse is being developed in two phases, with the first set to open in May 2012 and the first round of daily deliveries will go to the over 220 Toyota, Lexus and Hino dealerships in Southern Africa.

The warehouse is expected to generate a R3 billion turnover and will house an excess of 2.2 million parts.

It follows a five-year R8 billion investment programme into Toyota SA's manufacturing facilities in Durban. Upon its completion, the facility - which represents the largest single investment in the Gauteng Province - will cover 80 000m².

The second phase will include a further 38 000m² of warehouse space and is scheduled for completion by or before 2015.

"In making this a reality, we believe that the government, through the actions of the Department of Trade and Industry and the Automotive Production and Development Programme (APDP) has created a stable and predictable environment in which we as manufacturers can make investments such as the one that we are announcing today," he said.

In December, Cabinet welcomed Mercedes Benz announcement of a further R2 billion to build the next generation C-Class at its East London plant.