German car manufacturer Mercedes Benz is to invest $700m in South Africa as part of expansion plans.
The company says expanding its production operations in South Africa with such an investment will “equip it for the future”.
South Africa’s trade minister Rob Davies says “We are hoping that this investment here will lead to further investments by components manufacturers.”
“We estimate that will bring a further investment,” Davies added.
Signal for other investors
South Africa’s President Cyril Ramaphosa says the latest move by the car manufacturer should send a signal to other investors that “South Africa is capable of delivering efficiency”.
“This investment is a statement of trust, a statement of confidence that South Africa is indeed a good investment destination and we welcome you for having brought this investment here.”
“We are glad that we have partners like Mercedes Benz. We want to see more,” Ramaphosa added.
Mercedes Benz operations in South Africa
The German car manufacturer has a plant in South Africa’s coastal city of East London. It was first opened in 1958.
That plan currently employs 3,300 people. Many of them work in passenger vehicle production.
In 2017 the plant’s production volume reached 110,000 vehicles.
Member of Mercedes-Benz’s divisional board, Markus Schafer says “This is an important milestone for Mercedes-Benz, especially for Mercedes-Benz South Africa today.”
“I think a very important milestone for the community, expanding the plant and making the plant ready for the future. This is a sign of trust in the fantastic work force,” Schafer added.
Source: Africafeeds.com
