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Port Elizabeth - The Coega Development Corporation (CDC), operator of the Coega Industrial Development Zone (IDZ), announced on Tuesday it will establish a multi original equipment manufacturers (OEM) complex for the automotive assembly and components manufacturing sectors in zone 2 of its industrial estate in Nelson Mandela Bay, Port Elizabeth.
The state-owned entity has earmarked 306 hectares of land for automotive manufacturing industrial activity through its recently unveiled five year strategic plan, which will embrace an OEM industrial clustering approach.
The multi-OEM complex will house vehicle assembly halls and shared service infrastructures. First, second, and third tier automotive component suppliers will all be brought together in one mega-automotive zone.
The Coega multi-OEM complex differs from other IDZ’s OEM platforms in South Africa, which comprises a central assembly hall for several vehicle brands.
The CDC believes its OEM complex has the potential to become “the second economic heart beat of Africa’s automotive manufacturing capital Port Elizabeth, which is also home to General Motors, Volkswagen and Ford manufacturing plants”.
Gustav Meyer, CDC’s business development manager for automotive industries said that in emerging markets OEM industrial clustering is an accepted and prominent form of economic organization.
“Globally, vehicle manufacturers are beginning to embrace the advantages of strategic alliances, cooperation and interdependence in relation to shared services and communal infrastructures for automotive manufacturing and assembly,” he said.
“Currently, we are in discussion with potential investors and projects in excess of R1bn.”
- Fin24
