13 Nov IDC, BAW launch a CAM taxi assembly plant
The new taxi assembly plant will come as a welcome boost to the development of the local taxi industry, and at the same time create employment opportunities to the community of Springs, in Ekurhuleni.
Geoffrey Qhena, chief executive of the IDC, says this partnership falls under the local bus, truck and minibus programme initiated by the Department of Trade and Industry (the dti) in 2010.
He says: “The investment underlines the continued strong cooperation between the BRICS countries. The assembly plant is expected to provide many benefits to South Africa, including increased localization of the automotive industry and export opportunities.”
The minibus taxi assembly project is one of the first deals between the IDC BAW under the bus, truck and minibus programme.
BAW South Africa chief executive James Chung the project is also one of the first significant investments by a Chinese OEM in the South African automotive industry.
The total project investment is estimated at R196 million from all shareholders. The IDC will contribute equity in the amount of R22,9 million as a 24.5% shareholder in CAM, as well as debt facilities of up to R98.6 million.
The plant will assemble the new 16-seater minibus taxis (009), which were designed and developed by BAW under the international BAW brand. The vehicles will include a free two-year, 200 000 kilometer service plan to ensure the taxis are affordable and safe.”
The first phase of the assembly plant was launched on 13 November 2012 and will involve the establishment of a Semi Knock Down (SKD) facility in the New Era industrial site in Springs.
A note on BAW
Beijing Automobile Works Co., Ltd (BAW) was founded in 1958 to manufacture military vehicles for the Chinese Army and has developed a strong track record as a reputable Chinese OEM. The company has expanded to design and manufacture a wide range of commercial and passenger vehicles including SUVs, trucks and light duty busses.
BAW is a subsidiary of Beijing Automobile Industry Holding Company (BAIC), the fourth largest OEM in China, BAW owns three plants within Beijing including a recently completed manufacturing facility and CKD plant for trucks in Russia.
For more information, please contact:
Public Relations Manager – IDC
Tel: +27 (0) 11 269 3282
Cell: +27 (0) 82 880 6074