industry news
FAW makes history
in South Africa
South Africa, the Eastern Cape and the Coega IDZ are set for rapid growth as FAW Vehicle Manufacturers SA (Pty) Ltd has
officially opened its vehicle manufacturing plant.
T
he first FAW commercial vehicle, built in South Africa,
rolled off the assembly line at the FAW production plant at
Coega, in the Eastern Cape, on 10 July 2014. The decision
to build the FAW plant in South Africa is very significant from a
global perspective, as it is one of the most important and largest
investments made by a Chinese entity in South Africa to date.
The total investment has been financed by China FAW Group
Corporation and the China-Africa Development Fund (CAD-Fund).
This collaboration speaks volumes to the growing interest from
global Chinese Industry in unlocking the true Africa potential.
“On the African continent where FAW also provides sales and
service, more than 50 000 FAW vehicles have been sold since FAW
first came to Africa. Since our original presence here, FAW has sold
approximately 11 000 units,” says Yusheng Zhang, CEO of FAW
Vehicle Manufacturers SA (Pty) Ltd.
Originally announced in 2012, the decision to construct the local
FAW plant was not one that was taken lightly, explains Yusheng
Zhang: “We could have gone to Kenya, or Tanzania where FAW has
been present in sales and service for over 30 years – but in the end
we chose South Africa because of the infrastructure. It then came
down to a choice between East London and Coega.” In the end
Coega was chosen because, as Zhang says, “the infrastructure is
perfect”.
This historic initiative makes for a number of firsts:
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At a cost of USD 60 million towards the establishment of
this modern, high-quality vehicle production plant and all
its associated infrastructure, this is truly the single biggest
recent vote of confidence in the local vehicle industry.
The Coega plant with its build-capacity of 5 000 units
per annum, represents the first high-quality Chinese
manufacturer to set-up and contribute on this scale, in the
Eastern Cape region.
FAW Vehicle Manufacturers SA (Pty) Ltd will be the first OEM
to build locally its entire range of commercial vehicles sold
here – 14 models spanning the Medium, Heavy and ExtraHeavy Commercial Vehicle segments. Henceforth all FAW
trucks in SA can carry the ‘badge of honour’ of ‘Made in
South Africa’.
Future plans include the commissioning of a body-building
facility at the Coega plant. Tipper Truck bodies, Mixers
and Customised Trailers will be built in the facility, nearing
completion, and adjoining the main plant. FAW will be the
first SA-based OEM to offer its body-building facility to other
commercial vehicle manufacturers.
The first-phase of the Coega plant, covering 103 000m² of land
and a 28 000m² plant – complete with training facilities, will allow
the company to provide its client base with a sense of pride and
patriotism by ‘buying local’. Expected to ramp-up to produce 5 000
trucks per annum, the Coega assembly plant will supply trucks to
the South African market, as well as to the rest of Africa, in both
right-hand and left-hand-drive derivatives. The current projections
are that 40% of production will be destined for the South African
territories, while 60% will be exported.
Yusheng Zhang shares more exciting news for future growth:
“Following the smooth introduction of our commercial vehicle
production line, which includes the full chassis, driveline, cab fitment
and paint shop, we plan, in the near future, to commission our fully
integrated body-building facility. This is an exciting extension of the
FAW manufacturing option in South Africa and a truly unique one at
that. The body-building facility will be equipped to build complete
Tipper Bodies, Mixer Truck Bodies and ultimately customer-specific
trailer configurations. We are at present reviewing the manufacture
of a waste compactor vehicle. “What will be extraordinary and
certainly another ‘first’ is that FAW will offer its bodybuilding facility
to other brands of commercial vehicle manufacturers.”
Richard H. Leiter, director on the Executive Board of FAW
Vehicle Manufacturers SA (Pty) Ltd, relates the growth of the
local group. “FAW trucks first made their appearance in South
Africa just on twenty years ago when my company at that time,
acquired the licence to import, distribute and sell FAW vehicles
here. Since starting sales locally in 1994 we have seen growth
at a steady pace. While the numbers have been appropriate for
a start-up Chinese brand, we are satisfied that the growth has
been consistent. Our 2014 target for this year’s sales, excluding
exports, is 900 units, which is 80% more than the number we sold
in 2013”.
| logistics in action
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FAW SA’s existing assembly facility in
Isando, Gauteng, will be transformed into a
fully-fledged Service Centre which will also
accommodate the Parts Warehouse,
continues Yusheng Zhang.
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AUGUST 2014
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