Eric Naki
THE French car giant, Peugeot Motor Company, is considering opening an assembly plant in the Eastern Cape.
The move — which would add another competitor to the club of South Africa’s already arguably overcrowded vehicle manufacturers — was confirmed by Eastern Cape MEC for Economic Affairs Smuts Ngonyama this last week.
Ngonyama, who is acting provincial premier while Raymond Mhlaba is in hospital with leg ulcers, earlier told a local radio station talk show that Peugeot was interested in placing a plant in the area. He said Peugeot’s representatives had visited him to discuss the possibility of investing in the region.
However, the company had expressed concern about the existence of a number of car plants in the area already.
Ngonyama said he would be travelling to France shortly to get the “nitty gritty” of the multi-million rand investment.
If implemented, the deal would be the biggest investment of its kind in the region since the new provincial government was elected to power.
The region’s big business has welcomed the proposed move with open arms.
Border Chamber of Business executive director Errol Spring called it “fantastic and “good news”.
“We are desperately looking for any big investment in our region. We support the minister very strongly,” he said.
However, he said it was important the region “gets its act together”.
He said businessmen in the region needed Ngonyama to form an economic policy.
“We urgently need an economic policy and proper tax structures. Investors would want clear direction about the region’s tax situation and relocation allowances,” Spring said.