As the Coega Development Corporation moves to establish a new automotive industrial park to support increased original equipment manufacturing in the Gqeberha Special Economic Zone (SEZ), it is also taking steps to ensure local small-scale suppliers get plugged into the sector value chain.
To this end, the corporation signed a memorandum of understanding on Friday with Gauteng’s Automotive Industry Development Centre (AIDC) to formalise a partnership that will put programmes in place to train and accelerate their participation.
This will be done through enhancing skills, incubator initiatives and township-focused development.
The AIDC’s chief executive, Andile Africa, said the arrival of the multinational automotive manufacturer Stellantis and the expected increase in production at FAW and BAIC, the two established original equipment manufacturers (OEM), presented new opportunities for SMMEs.
“Stellantis will be starting production here in [2026], so we want black-owned companies that will be part of their supply chain in a similar way that we have an incubation hub currently running at Ford and Nissan,” he said.
The AIDC pioneered the incubation concept within the SA automotive industry through which it supports black-owned enterprises during the start-up phase.
The enterprises operate within the incubation facility where they are monitored and receive training, while also receiving subsidised rental and other financial support.
“We want to replicate what we are already doing and see if we can do it in the Eastern Cape,” Africa said.
The R3bn Stellantis assembly plant is expected to be completed by December 2025, and production of the Peugeot Landtrek 1-tonne to start in the first quarter of 2026.
“While we know most OEMs conclude their supplier agreements overseas before they get here, what we are saying is that we will be looking for possible opportunities in the assembly of components or other value-added services such as painting.
“Here we will be looking at attracting people who are already in the automotive space with the intent to accelerate them to tier 2 and 3 suppliers,” he said.
Another area of focus will be the Supplier Efficiency Improvement Programme, which trains component suppliers with the international standards prescribed by the automotive manufacturing industry.
“Because there will be several suppliers coming here to accompany the Stellantis productions, the AIDC supply enterprise development team will work to assist in introducing efficient ways of supplying for the production lines for Stellantis and other OEMs we may attract in the future.”
The Coega Development Corporation’s acting chief executive, Themba Koza, said along with the support to ensure OEMs can build cars, skills transfer was also imperative.
“Part of developing the auto sector is the supplier park.
“We are managing the one in Kariega but now we will develop one for the entities that are located in the SEZ,” he said.
“What is also important is skills transfer to local people to make sure they play a role in the supply of components,” he said.
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