SOUTH AFRICA > Germany based Mercedes- Benz Cars is set to invest €600 million ($705.09 million) in East London, South Africa

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Including the construction of a new paint shop and a new body shop, Germany based Mercedes- Benz Cars is set to invest €600 million($705.09 million) in East London, South Africa. The investment also will include an upgrade of the assembly shop and new logistic warehouses. The new building will comprise an area of approximately 100.000 sqm. which reflects the addition of two thirds of the already existing buildings for the passenger vehicle production. State of the art technologies that are environmental friendliness will also be introduced at the new workshops.

According to Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain:

“With the investment of €600 million we are significantly expanding our plant in East London and equipping it for the future. The decision to have the new generation of the C-Class built in East London re-affirms the plant and Mercedes-Benz South Africa. The investment is also a sign of our commitment to South Africa and efforts to revive economic growth as well as the socio-economic development of the East London region. ”

President Cyril Ramaphosa further added the following:

“Central priority for government this year has been to encourage significant new investment in our economy, necessary to realize economic growth, employment and reduce inequality. This investment by Mercedes-Benz Cars endorses South Africa as a favourable destination for investment; and correspondingly, demonstrates our determination to work with all social partners to seize the opportunities that are opening up for greater investment and faster growth.”

This is the sixtieth anniversary of Mercedes- Benz passenger vehicle production at the East London plant and over the years it has been a significant contributor to South Africa’s trade balance and an economic multiplier for East London.

About Mercedes- Benz

Headquartered in Germany, Mercedes- Benz AG manufactures and distributes automobile and offers passenger cars, buses, vans, coaches, trucks, sport utility vehicles as well as all the relevant spare parts and accessories.

The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benz’s and Gottlieb Daimler’s companies into the Daimler-Benz company. But traces its origins to Daimler-Motoren-Gesellschaft’s 1901 Mercedes and to Karl Benz’s 1886 Benz Patent-Motorwagen, which is widely regarded as the first gasoline-powered automobile.

About Daimler

Daimler AG is a German multinational automotive corporation. It is headquartered in Stuttgart, Baden-Württemberg, Germany. As of 2014, Daimler owns or has shares in a number of car, bus, truck and motorcycle brands including Mercedes-Benz, Mercedes-AMG, Smart Automobile, Freightliner, Western Star, Thomas Built Buses, Setra, BharatBenz, Mitsubishi Fuso, MV Agusta as well as shares in Denza, KAMAZ, Beijing Automotive Group.

In 2015 Daimler sold 2.9 million vehicles and made profit of €8.711bn($9.24bn). By unit sales, Daimler is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm.