Tshwane Mayor welcomes BMW investment in SA

Wednesday, November 18, 2015

Pretoria - Tshwane Mayor Kgosientso Ramokgopa has welcomed BMW Group South Africa’s R6 billion investment at its Rosslyn, Pretoria plant, saying it is a step in the right direction for the African continent.

“We see this investment as a step in the right direction for Africa as a future market for exports as well as the newly reviewed Automotive Production and Development Programme (APDP) by our Trade and Industry Ministry. We are certain it will increase our footprint in the manufacturing industry and automotive industry” said Mayor Ramokgopa.

With this investment, the carmaker will make the next generation BMW X3 at the plant, which will replace the BMW 3 Series Sedan which will now be allocated to other plants within the global BMW production network.  

The Mayor, who is currently in Bonn, Germany, said on Tuesday the investment comes at the right time for South Africa.

“We are awaiting the eminent arrival of the X3 and are excited about the future prospects of the Rosslyn plant and believe that this investment will indeed create an opportunity to increase the localisation of component manufacturing when BMW announces details of this investment,” he said.

The automotive industry’s contribution to South Africa’s Gross Domestic Product (GDP) during 2011 is estimated at 7.6%.

“The automotive industry employs almost 30 000 people and accounts for at least 35% of the export of passenger vehicles. The Tshwane automotive industry hosts five of the major original equipment manufacturers in the country, namely Nissan, BMW, Tata, MAN and Ford. Other original equipment manufacturers such as Daimler, Mahindra and Volkswagen are also represented in Tshwane.”

Moreover 40% of all passenger vehicles manufactured in South Africa are produced in Tshwane.

The automotive and components industry in the City of Tshwane has a turnover of about R30 billion in current prices.

It further generates about a quarter of the manufacturing sector’s value add and contributes about 3.3% to the city’s economy. It is represented by more than 200 companies employing almost 18 000 people. - SAnews.gov.za

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