Stellantis (STLA) announced Wednesday in a press release that the automaker has signed a Memorandum of Understanding with the Industrial Development Corporation (IDC) and Department of Trade, Industry and Competition (the dtic) to develop a manufacturing facility in South Africa.
The signing ceremony took place at the office of Mr. Ebrahim Patel, Minister of Trade, Industry and Competition, and was attended by Mr. TP Nchocho, CEO of the IDC, Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer, and Mr. Leslie Ramsoomar, Stellantis South Africa Managing Director.
“I am pleased that Stellantis is looking to South Africa to expand its manufacturing footprint,” Mr. Ebrahim Patel, Minister of Trade, Industry and Competition said today. “The company is a large global- automaker, with a range of well-known brands. South Africa is a great investment destination with significant car-making capacity. We look forward to working closely with Stellantis to enable the company to set up a plant that will expand our manufacturing base and create local jobs,” he said.
“This is an important step in our Dare Forward 2030 strategic plan towards strengthening our leadership in the Middle East and Africa region and becoming a major player in South Africa,” said Mr. Samir Cherfan, Stellantis Middle East and Africa Chief Operating Officer. “The manufacturing site in South Africa will be a new building block in our industrialization strategy that includes the plan to sell one million vehicles in the region by 2030 with 70% regional production autonomy and will bring us closer to our customers’ needs in the region.”
The plan is for the factory to be built in a South African Special Economic Zone (SEZ), with the aim to complete this manufacturing project by 2025.
“An investment partner like Stellantis is an amazing opportunity for South Africa,” said Mr. TP Nchocho, CEO of the IDC. “Their track record in manufacturing plants around the world is impressive and we look forward to a joint venture with Stellantis to build a successful plant in South Africa. Another brick in the foundation towards our target of producing a million cars locally in SA.”
Shares of STLA are up 0.49% in pre-market trading on Wednesday.
By Michael Elkins | Michael.Elkins@streetinsider.com