(SA) economy
13 September 2006
Job creation and skills training is to take a giant leap with the launch on
Friday, 15 September of a new R116 million vehicle components plant in East
London.
The Foxtec-Ikhwezi, a joint venture between Germany's Otto Fuchs company and
local black empowerment Ikhwezi Investment Holdings, will produce vehicle
aluminium parts for DaimlerChrysler, which will use 20% of them for production
of its new C-Class Mercedes Benz model and export the remaining 80% on a
seven-year contract.
The venture, in which official launch Labour Minister, Membathisi Mdladlana,
will be a keynote speaker, has created 120 news jobs and training opportunities
â vastly boosting investment in the East London Industrial Development Zone
(IDZ), under whose auspices it is taking place, to over R300 million.
The plant is expected to generate 1,5 million parts next year alone, while
production will increase to 4,5 million in 2008 â enough to equip over 700 000
vehicles.
Since the new plant's premises are only four kilometres away from the
harbour, and just under a kilometre from DaimlerChrysler, proximity will
provide Foxtec-Ikhwezi with convenient just-in-time supply markets.
Enquiries: Mokgadi Pela
Cell: 082 808 2168
Website: www.labour.gov.za
Issued by: Department of Labour
13 September 2006
