China's Norinco Motors to Open South African Plant

China North Vehicle Corporation, also known as Norinco Motors, will become the first Chinese carmaker to hold a production facility in South Africa. The move will be possible as Super Group, currently owned by Super Group Industrial Products (SGIP), will sell several of its assets, including buildings and sites, to the Chinese company.

SGIP was officially formed in 2007 when multiple companies, including Super Group Equipment, Super Group Commercial Vehicles, MMS Cranes, Hermans Truck Accident Repair, Cargolite and Africa Truck Assemblers, merged operations for the creation of a unique entity responsible for all businesses.

Norinco Motors and Super Group will establish the so-called Commercial Vehicle Assembly and Distribution Entity (CVADE), with the Chinese carmaker to hold a 70 percent equity interest, according to Creamer Media cited by gasgoo.com. After the deal gets the final signing, CVADE will handle several operations in South Africa, including the assembly and distribution of the Powerstar-badged trucks in the country.

The two companies will receive the support of China Construction Bank Corporation's Johannesburg branch that has already agreed to provide financial support to Super Group and help it bring the agreed contribution to CVADE.

China North Industries Corporation currently manufacturers cars, trucks and motorcycles as well as a wide array of non-automotive products, including explosives and blast materials, civil and military firearms and ammunition, optical-electronic devices and other type of machineries. It was established in 1980 and is currently operating several US subsidiaries including China Sports (California), Forte Lighting, Larin, NIC International (New Jersey).