German automotive giant, BMW, is to pump more than R2 billion into its Rosslyn plant in the Tshwane Metro.
This is despite the tumultuous global economic climate that has put brakes in the growth of the automotive sector around the world. The company made the announcement in Rosebank on Monday.
Welcoming the developments, Gauteng Premier Nomvula Mokonyane said the “investment was an unequivocal expression of confidence by the BMW group in the resilience and future of the South African economy.
“As Gauteng we are particularly pleased to hear that BMW intends on using the investment to guarantee jobs and develop skills. This will ensure that even as the world is still reeling from the impact of the current economic crisis our people will have jobs and will be able to provide for themselves and their families,” said Mokonyane.
She said the automotive industry “remains a key industry in Gauteng and has over the years contributed to economic growth and job creation. “Since BMW started its export programme 15 years ago many jobs have been created directly linked to the company and its suppliers. Other original equipment manufacturers have followed BMW making the automotive industry a strong growth sector in the province,” said Mokonyane.
Mokonyane once again re-affirmed the government’s commitment to “create an enabling environment for the growth of the automotive industry. The announcement by BMW bears testimony to this,” she said. The investment will see the Rosslyn plant produce 87 000 units, a big jump from the 60 000 produced currently.
In 2000 the Gauteng Provincial Government introduced a strategic economic infrastructure programme known as Blue IQ. The automotive industry was identified as one of the key growth sectors and benefited from the multibillion rand investment that the government laid out. The automotive industry development corporation was then established to enhance the global competitiveness of the automotive industry.
“Our approach was to invest public money in strategic economic infrastructure with a view of creating an enabling environment for growth in private sector investment,” said Mokonyane.
Issued by: Office of the Premier, Gauteng Provincial Government
5 October 2009
Source: Gauteng Provincial Government (http://www.gautengonline.gov.za)
