The State-owned Industrial Development Corporation (IDC) says the bankable feasibility study for the proposed multibillion-rand Stellantis vehicle assembly plant, in Coega, in the Eastern Cape, is under way.
The project is a joint venture (JV) between Stellantis and the IDC.
IDC spokesperson Tshepo Ramodibe says the outcome of the feasibility study will inform thecorporation on its contribution to the JV.
“We are currently exploring our participation in the project. We are working closely with Stellantis to determine the extent of our participation in this project.”
Ramodibe says the project “aligns with IDC’s intent to drive investment that supports the development of the regional automotive value chain”.
“Other than BAIC, we have not taken any form of equity in recent years in a large-scale automotive original-equipment manufacturer (OEM, or vehicle maker). “However, we remain open to funding all levels of the automotive industry – both OEMs and component manufacturers.”
The BAIC plant, for the Chinese manufacturer, is also in Coega, but is not yet in production.
Stellantis announced last month that it would invest R3-billion to develop a greenfield manufacturing facility in Coega, along with the IDC and the Department of Trade, Industry and Competition.
The manufacturing plant is scheduled for completion by the end of 2025.
The first vehicle to be built, planned for early 2026, is a one-ton bakkie, with volumes expected to reach up to 50 000 units a year for the local and export markets.
The plant’s capacity, as determined by space and the paint plant, is 90 000 units a year.