Buffalo City was struck a winding blow when it was announced that Coega would get a new R11-billion car plant, and drew an angry response from BCM business.
The deal was announced by the Coega Industrial Development Zone (IDZ), Beijing Automobile International Corporation (BAIC) and department of trade and industries (dti) on Thursday night.
The deal flowed from President Jacob Zuma and Chinese Prime Minister Xi Jinping signing 26 bilateral agreements valued at R100-billion in Johannesburg in December, the parties said in a statement.
This will see the construction of an original equipment manufacturer automotive plant at Coega, which for years had been planned for the East London Industrial Development Zone (ELIDZ).
The deal is seen as a massive boost for the Nelson Mandela Bay Metro, which drew international focus on Thursday when the DA and its alliance partners in council took control from the ANC.
Les Holbrook, director of the Border-Kei Chamber of Business was outraged yesterday saying: “No amount of rah-rah discounts the fact that we were robbed of these investments.
“The ELIDZ put in the hard work and enterprise for this investment and the recent (R810-million) FAW truck factory, and at the last minute both were redirected to Port Elizabeth by the dti and the provincial government.
“It’s wholly demoralising to do all the work and spend enormous amounts of time in planning and feasibility – only to be told at the last minute that the investment will be going to Coega – who themselves did very little to attract the initial investment interest.”
Holbrook said it was “reprehensible” that the two IDZs competed on the basis “that when one knows what deal is being proposed, it undercuts so as to win that investment”.
ELIDZ spokeswoman Ayanda Ramancwana said: “The reality is that the Eastern Cape province won. While there were a number of benefits that the East London IDZ location offered the investor, we could not do enough to counter the financial impact of not having a deep water port in close proximity to the zone.
The current advertised draught for the East London harbour is 10.4m. Last year, the Dispatch reported on ships being turned away because of a build up of silt of up to a metre. Dredging began in July that year.
Eastern Cape MEC for economic development, environmental affairs and tourism, Sakhumzi Somyo, reacted with joy.
“This investment is set to contribute phenomenally to economic growth and much-needed job creation in the province.”
BCM loses car plant deal
The deal was announced by the Coega Industrial Development Zone (IDZ), Beijing Automobile International Corporation (BAIC) and department of trade and industries (dti) on Thursday night.
The deal flowed from President Jacob Zuma and Chinese Prime Minister Xi Jinping signing 26 bilateral agreements valued at R100-billion in Johannesburg in December, the parties said in a statement.
This will see the construction of an original equipment manufacturer automotive plant at Coega, which for years had been planned for the East London Industrial Development Zone (ELIDZ).
The deal is seen as a massive boost for the Nelson Mandela Bay Metro, which drew international focus on Thursday when the DA and its alliance partners in council took control from the ANC.
Les Holbrook, director of the Border-Kei Chamber of Business was outraged yesterday saying: “No amount of rah-rah discounts the fact that we were robbed of these investments.
“The ELIDZ put in the hard work and enterprise for this investment and the recent (R810-million) FAW truck factory, and at the last minute both were redirected to Port Elizabeth by the dti and the provincial government.
“It’s wholly demoralising to do all the work and spend enormous amounts of time in planning and feasibility – only to be told at the last minute that the investment will be going to Coega – who themselves did very little to attract the initial investment interest.”
Holbrook said it was “reprehensible” that the two IDZs competed on the basis “that when one knows what deal is being proposed, it undercuts so as to win that investment”.
ELIDZ spokeswoman Ayanda Ramancwana said: “The reality is that the Eastern Cape province won. While there were a number of benefits that the East London IDZ location offered the investor, we could not do enough to counter the financial impact of not having a deep water port in close proximity to the zone.
The current advertised draught for the East London harbour is 10.4m. Last year, the Dispatch reported on ships being turned away because of a build up of silt of up to a metre. Dredging began in July that year.
Eastern Cape MEC for economic development, environmental affairs and tourism, Sakhumzi Somyo, reacted with joy.
“This investment is set to contribute phenomenally to economic growth and much-needed job creation in the province.”
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