Enterprise Television- Mercedes Benz Announces $700 Million Expansion in South Africa
German car manufacturer Mercedes Benz says it is expanding its production operations in South Africa by investing 10 billion rand ($700 million; £529 million) to “equip it for the future”.
The investment is expected to encourage further investments by components manufacturers.
The plant in the coastal city of East London currently employs 3,300 people, most of who work in passenger vehicle production. It was first opened in 1958, and in 2017 the plant’s production volume reached 110,000 vehicles.
South Africa’s trade minister Rob Davies said: “We are hoping that this investment here will lead to further investments by components manufacturers – we estimate that will bring a further 2bn rand investment.”
Adding that President Cyril Ramaphosa said he wanted the announcement to send a signal to other international investors that “South Africa is capable of delivering efficiency.”
“We are glad that we have partners like Mercedes Benz. This 10bn rand must not be the last. We want to see more.”
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