The Executive Mayor of the Nelson Mandela Bay Municipality Babalwa Lobishe has reaffirmed the metro's unwavering commitment to secure a proposed R2 billion investment by Sailun Group to establish a tyre manufacturing and recycling facility at the Coega Special Economic Zone (SEZ).
The proposed investment is expected to strengthen Nelson Mandela Bay's position as a leading automotive manufacturing hub, while creating thousands of employment opportunities, expanding local industrial capacity, unlocking new export markets and significantly growing the municipality's long-term revenue base.
The Mayor's commitment follows strategic engagements with the Coega Development Corporation (CDC) and Sailun Group as the company assesses the Coega SEZ as a preferred location for its regional tyre manufacturing hub.
Lobishe said attracting strategic investment remains central to the municipality's economic recovery and growth agenda.
"Nelson Mandela Bay is ready to compete for global investment. We are determined to create an enabling environment where investors can establish, grow and contribute meaningfully to our local economy.
"Every major investment we secure creates employment, stimulates local businesses, expands our manufacturing capability and restores confidence in our city as an investment destination," Lobishe said.
Global tyre manufacturer, Sailun Group, is currently conducting feasibility studies for the establishment of a manufacturing hub that will supply the Southern African Customs Union (SACU) and the broader sub-Saharan African market.
The company is considering the Coega SEZ after delays affected its originally proposed location elsewhere in South Africa. According to the municipality, the company is now assessing the SEZ as a preferred investment destination because of its strategic location, world-class logistics infrastructure, industrial land availability, renewable energy opportunities and direct access to the Port of Ngqura.
The proposed development includes a 20-hectare manufacturing facility with an estimated production footprint of 100 000m². It will incorporate embedded renewable energy generation, battery storage systems and the use of treated industrial return-effluent water to support sustainable manufacturing.
During its initial phase of operations, the facility is expected to produce one million passenger vehicle tyres and 300 000 truck and bus tyres annually, with future expansion expected to increase production significantly in line with market demand.
The investment is projected to create about 200 direct jobs during the initial operational phase, increasing to approximately 800 permanent jobs as the facility expands. More than 1 200 indirect employment opportunities are also expected to be created across the construction, logistics and supporting industries.
Lobishe emphasised that the municipality is committed to working collaboratively with the Coega Development Corporation, the Department of Trade, Industry and Competition (the dtic), and all relevant stakeholders to ensure Nelson Mandela Bay presents a competitive and investor-friendly value proposition.
"Our role as local government is to facilitate sustainable investment while ensuring responsible governance and long-term municipal sustainability.
"Through coordinated planning and responsive service delivery, we are committed to creating an environment where strategic investors can succeed, and where local communities benefit through employment, enterprise development and economic inclusion," she said.
Engagements between the municipality and the CDC have focused on providing certainty around municipal service delivery, utility tariffs, infrastructure planning, renewable energy integration, streamlined municipal processes and coordinated investment facilitation.
These discussions seek to ensure that Nelson Mandela Bay remains internationally competitive while maintaining responsible financial governance and service delivery sustainability.
According to the municipality, the proposed investment aligns with its long-term development priorities by attracting substantial foreign direct investment into Nelson Mandela Bay; driving manufacturing-led economic growth; creating sustainable employment opportunities; expanding the automotive value chain; increasing localisation of industrial production; supporting exports through the Port of Ngqura; growing the municipal revenue base; and promoting renewable energy adoption and circular economy initiatives through tyre recycling; strengthening investor confidence in the municipality and the Eastern Cape.
Lobishe said the investment also presents an important opportunity to reinforce Nelson Mandela Bay's reputation as South Africa's automotive capital while contributing meaningfully to national industrialisation objectives.
"This investment is about far more than a manufacturing plant. It is about restoring confidence, creating hope through sustainable jobs, strengthening our industrial economy and demonstrating that Nelson Mandela Bay is open for business.
"We will continue working with all spheres of government and our strategic partners to unlock opportunities that improve the lives of our residents and grow our local economy," the Mayor said. – SAnews.gov.za
