Construction of the Stellantis project at Coega’s Special Economic Zone has begun, starting with the preparation of the building platform.
This follows the conclusion of negotiations between Stellantis and the Industrial Development Corporation, paving the way for the registration of a company to manage the joint venture.
Stellantis is a multinational motor giant which counts Jeep, Dodge, Fiat, Peugeot, Opel and Alfa Romeo among its brands.
Coega Development Corporation spokesperson Andile April said a team of service providers had been appointed.
“The project site has been cleared in Zone 2 and the development of the building platform is under way.
“This will be followed by the appointment of the main contractor for the top structure, once all conditions have been met, including the registration of the SA entity or joint venture company by Stellantis.”
April confirmed that all regulatory approvals had been obtained, including construction permits from the department of employment and labour.
He said the site development plan had also been approved by the Nelson Mandela Bay municipality.
The partnership between Stellantis and the IDC sees the development institution obtain a 49% shareholder position in the joint venture.
Once the plant is completed, this will see the production of the Peugeot Landtrek 1-ton pickup scheduled to start in quarter one of 2026.
“The project is receiving support from the department of trade, industry and competition, hence the project appointed service providers as mentioned above with funding duly approved early this year by [the department].
“Other conditions yet to be fulfilled include the finalisation and registration of the JV company and conclusion of agreements between the JV partners and newly registered company and Coega,” April said.
During Bhisho’s recent Taking the Legislature to the People, economic development, environmental affairs and tourism portfolio chair Mawethu Rune said the Stellantis Group, the fourth largest automaker in the world, agreed to invest R3bn at the Coega SEZ.
Rune said the investment would create more than 1,000 jobs and a 30% localisation rate over five years.
“The Stellantis investment is forecast to increase local supplier participation across the value chain.”
April said the CDC submitted funding applications for investor projects that qualified and met the criteria as set out by the SEZ Programme Funding.
“The [department of trade, industry and competition] follows internal processes and structures to review applications, and decisions are communicated with the entities that applied.
“The same process was followed when applying for the Stellantis project funding during the previous financial year.
“The Stellantis project is progressing well.
“A project team with all relevant parties including the client has scheduled meetings to monitor project progress.
“The project team continues to ensure that the project is executed successfully and that SA derives value from the investment,” April said.
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