Stellantis to Invest $160 Million in South Africa Auto Factory
(Bloomberg) -- Stellantis NV will invest 3 billion rand ($160 million) to develop a new vehicle manufacturing facility in South Africa with the country’s Industrial Development Corp. and the Department of Trade, Industry and Competition.
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The owner of brands such as Alfa Romeo, Chrysler and Jeep first signed a memorandum of understanding with South Africa’s government in March. The project was finalized on Wednesday at a meeting attended by Stellantis Middle East and Africa Chief Operating Officer Samir Cherfan, Trade and Industry Minister Ebrahim Patel and IDC officials, the trade department said in a statement.
The factory will be built in a special economic zone near the ports of Ngqura and Port Elizabeth in the Eastern Cape province, where Mercedes-Benz, Volkswagen AG, Ford Motor Co. have plants. The Stellantis facility is planned to be completed by the end of 2024 and could produce as many as 90,000 units a year, the department said.
Supported by government incentives, the automotive industry accounted for 4.9% of South Africa’s gross domestic product and 12.4% of exports last year, with manufacturers directly employing about 110,000 people, data from the Automotive Business Council show.
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