FAW accelerates overseas expansion
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China FAW Group recently stated that it plans to put into production the entire vehicle production project in South Africa in 2014 and promote the goal of achieving 150,000 export sales per year for FAW in 2015. This is just a certain step of FAW's overseas expansion.
In 2010, FAW and the China-Africa Development Fund established a joint venture to establish FAW Africa Investment Co., Ltd., which is mainly engaged in investment and trade in auto and parts related industries in Africa. FAW's Coega Industrial Plant, located in Nelson Mandela, Eastern Cape, South Africa, is the first car project to be jointly invested by the two parties. The plant was laid in February this year.
The first phase of the project is a KD assembly plant and sales network with an annual capacity of 5,000 trucks. The factory covers an area of ​​about 100,000 square meters and is expected to be officially put into operation in 2014 at a cost of 600 million rand (approximately 470 million yuan). Created about 500 direct jobs for Nelson Mandela City. The second phase of the project is a driver's seat right-of-street passenger vehicle project. It is estimated that the annual production capacity will be 30,000 small cars, and FAW will reserve 300,000 square meters of land for the second phase of development. All the above vehicles will be assembled from parts from China.
According to statistics, FAW is currently accelerating overseas expansion. In 2011, FAW established its first overseas factory in Ethiopia and produced small-sized Xiali cars in the form of SKD semi-parts. At the beginning of this year, FAW signed an agreement with Queen Group, a Russian distributor group, to deliver 33,000 vehicles to the latter in the next three years.