President Jacob Zuma will on Thursday, officially launch the R600 million Chinese mega project, First Automotive Works (FAW) company at the COEGA Industrial Development Zone in Port Elizabeth, Eastern Cape. FAW is a manufacturer of automotives for both heavy commercial and light passenger vehicles.

The Minister of Trade and Industry, Dr Rob Davies says the venture will boost the economic activities in and around the Nelson Mandela Bay.

“The first batch of heavy commercial vehicles which will be assembled will form part of phase 1. This phase of the project is expected to yield 5,000 units at full capacity and to create approximately 450 jobs with more expected in the supplier base. The second phase of the project will be geared towards the assembly of light motor vehicles with a production unit target of 35,000 cars,”


For born-and-bred Port Elizabeth woman, Thembisa Ngxale, working at the Chinese automotive giant First Automotive Works (FAW) South Africa, is a dream come true as well as an indication of growth potential in Nelson Mandela Bay. Mr. Bongani Moni says that he is delighted about his job as the newly appointed Warehouse manager at FAW. Moni says the employment means growth personal and professionally


Minister Davies says the FAW’s investment compliments the work currently being done by government in the automotive sector. In December 2012, the Automotive Incentive Scheme (AIS) for Peoples Carriers was launched in order to support the mini and midi bus segment commonly referred to as the taxi industry. In 2013 work was undertaken to further develop AIS for the Truck and Bus segments of Autos. This work culminated in the finalisation of AIS – Medium and Heavy Commercial Vehicle (MHCV) guidelines being published for comments by Minister Davies.


According to Minister Davies FAW’s investment is a clear sign of the maturing relations between South Africa and China. The investment coincides with the fifteen years of economic partnership between The People’s Republic of China and South Africa and in this period China has risen into South Africa’s number one trading partner.


Davies highlighted that the launch of the FAW project which follows on the heels of the opening of the Hisense plant in Atlantis in Cape Town is clear evidence of China’s commitment to Industrial development in South Africa.