Ricochet News

BAIC Automobile SA says construction of Port Elizabeth plant is on track

Sep 26, 2017
BAIC Automobile SA says construction of Port Elizabeth plant is on track

BAIC Automobile SA (Pty) Ltd, a joint venture between BAIC Group (Beijing Automotive Group Co., Ltd) and the Industrial Development Corporation (IDC), on Tuesday held a media briefing on the progress of the construction of its vehicle manufacturing plant to be established in Port Elizabeth.

BAIC SA’s vehicle assembly plant, which will be implemented in two phase, will comprise an assembly shop, paint shop, office block, energy centre and sewage treatment works.

“The first phase will have installed capacity to assemble up to 50,000 units per annum. This number is expected to double at full capacity in the second phase,” says BAIC SA senior manager, Sun Tongli.

He says that phase one is anticipated to be completed in the second quarter of 2018. Around two-thirds of the production is earmarked for the export market.

The vehicle will include passenger cars, sport utility vehicles, light commercial vehicles and pick-ups both for domestic and export markets.

Once operational, the project will create about 800 direct jobs.

BAIC SA says more than 35% of the R800 million building works budget has been allocated to SMMEs to ensure meaningful and impactful participation of SMMEs in the greater Nelson Mandela Bay Metro.

Project contractor, Beijing Industrial Designing and Researching Institute (BIDR), says 80 to 85% of the procurement value for the civil building works will be from South African companies. And 15 to 30% of the procurement value for the plant will be from South African suppliers.

The Global Fortune 500 company, in conjunction with the IDC, says all major construction contracts are at the advanced stage with some contracts already awarded and construction well under way.

SMMEs in the construction sector in the Nelson Mandela Bay Metro are encouraged to register on the BIDR procurement database - www.app.bidr.co.za. All tenders are published on www.bidrsouthafrica.co.za.

Image: An artistic impression of BAIC SA plant