VW Group Africa to invest billions in Eastern Cape
The Eastern Cape economy is set to receive yet another multi-billion rand boost.
The Eastern Cape economy is set to receive yet another multi-billion-rand boost.
This as the manufacturing giant Volkswagen Group Africa will invest an additional R4 billion at its existing Kariega Plant in the Nelson Mandela Bay.
The multi-billion-rand investment will also see the third model of the passenger car being manufactured in the plant.
The investment is set to re-affirm job security, skills development and bolster the province’s GDP.
Managing Director and Chairperson of Volkswagen Group South Africa, Martina Biene, says this will open up job opportunities.
“Mainly the investment here in the plant is really to secure the current level of employment to secure a stable three shift operation with 4 000 people being directly employed at VWSA because what normally happens in a cycle is the models you produce are aging, then you’ve got less demand in the world and you need to come up with a new model to keep the level where you are so here in the plant, it is really to secure and future proof the employment that we have.”
The automotive sector in South Africa is seen as a critical industry for global markets.
The transition from internal combustion engines to electric vehicles in Africa will strategically position the continent. As a critical role player with the much-needed mineral resources in Africa.
Over 170 billion rand has been invested in the province over the past four years.
And this is just the beginning.
Eastern Cape Premier Oscar Mabuyane says this investment is progress for the province.
“This will bring employment opportunities. The importance of VW Group Africa to the economy of Kariega, Eastern Cape, and South Africa cannot be underestimated. The other most recent investment is R34 million in solar photovoltaic panels and a further R55 million in solar panels in its employee park. With the negative impact of load shedding in our province, we have noted VW Africa Group’s commitment through these investments and our province is grateful.”
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