CHINESE PARTNERSHIP
Strikes delay China's flagship BAIC SA plant construction
The government is feeling pressure from the Chinese state-owned R11bn Beijing Automotive Industry Holding Company (BAIC) vehicle plant being built in the Coega special economic zone near Port Elizabeth. Called BAIC SA and situated next to the R600m Chinese state-owned FAW truck and passenger car plant built from 2012 onwards, the latest, far more expensive industrial development project is behind schedule. Recently, it has been hit by labour unrest — including burning barricades — among the very people it aimed to help. The Industrial Development Corporation (IDC) owns a 35% stake in the project, with BAIC owning the rest. At present, the basic superstructure of the main buildings is being erected as part of the first phase of development worth R1.7bn. So far only about R900m has been set aside to pay for structural steel from China, of which R300m has been set aside for small businesses drawn from local communities. In future, most of the plant’s inputs are meant to come from local...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.