FAW to Produce Trucks in South Africa
The company has signed a letter of intent with the China-Africa Development Fund, that states that the two entities will co-invest in the development of a vehicle production project in Africa. According to the company, the new development will produce mid-size trucks. However, exact details, such as the models that will be assembled in the country and the project’s location, have not been released.
The new business will be developed through a $100 million investment. 55 percent of the money will come from FAW, with the remaining 45 percent to be brought by the China-Africa Development Fund. The project will set a record, being the largest investment of its kind in the country. FAW group is already present on 17 African markets.
The China-Africa Development Fund was established by the Chinese Government in 2007 to support the Chinese companies development in Africa. The organization started with a total fund of $1 million, provided by the Chinese Development Bank – the total support-ready value has reached $5 million.
FAW Group (First Automotive Works) is a state-owned company that produces passenger vehicles, buses, light, medium and heavy-duty trucks. The business is the oldest Chinese automaker – it’s first model rolled out the production line in 1958. In 2009, FAW became the second largest automotive producer in China. The company has established joint ventures with Volkswagen, Toyota and Mazda.