South Africa’s Deputy President Paul Mashatile has called on Chinese automaker Chery to integrate township businesses into its supply chain following the company’s acquisition of the former Nissan manufacturing plant in Rosslyn, saying deeper localisation will create more jobs and strengthen the country’s automotive industry.
His remarks came during the official relaunch of the Rosslyn factory under Chery ownership on 3 July, shortly after the Competition Tribunal approved the acquisition subject to employment and local procurement commitments.
The transaction marks the first time Chery will manufacture vehicles in South Africa, opening a new chapter for the Chinese brand’s expansion in the local market.
According to previous announcements, production at the Rosslyn facility is expected to include the Jetour T1 and T2 Adventure SUVs, the Jaecoo J5, while industry sources have indicated that the Chery Tiggo Cross and Lepas L4 are also expected to be assembled at the plant.
Government pushes for deeper localisation
Mashatile said South Africa’s automotive ambitions should extend beyond vehicle assembly and focus on developing a strong domestic supplier network capable of generating long-term economic benefits.
He urged Chery to work closely with government in identifying and supporting local suppliers, particularly businesses owned by young entrepreneurs operating in township communities.
According to the Deputy President, stronger local supply chains would not only improve the resilience of automotive manufacturing but also spread investment into communities where employment opportunities are most needed.
He said the government’s objective is to ensure that industrial investment benefits transport companies, engineering firms, component manufacturers, logistics providers and other businesses throughout the automotive value chain.
Mashatile also highlighted Chery’s investment as an opportunity to strengthen cooperation between organised labour, local suppliers and township entrepreneurs while promoting broader economic inclusion.
Local suppliers seen as key to job creation
The Deputy President stressed that vehicle assembly alone creates limited employment compared with component localisation and supplier development.
He argued that expanding local manufacturing of automotive parts would generate significantly greater employment, encourage skills development and produce wider industrial benefits across multiple sectors of the economy.
Mashatile noted that the Rosslyn factory’s proximity to communities such as Mamelodi provides an opportunity to ensure industrial development directly benefits nearby residents.
He said government intends to support the creation of supplier opportunities, training programmes and enterprise development initiatives close to Mamelodi, Nellmapius, Eersterust and neighbouring areas.
According to Mashatile, this approach can transform industrial policy into household income while giving young South Africans practical pathways into engineering, manufacturing and entrepreneurship.
He added that the investment should enable township residents to see themselves not only as factory employees but also as business owners, innovators and future leaders within the automotive sector.
The Competition Tribunal approved Chery’s acquisition after Nissan announced earlier this year that it would end vehicle manufacturing operations in South Africa.
The Rosslyn facility previously produced the Nissan Navara before production ceased.
Government officials believe the investment provides an opportunity to preserve manufacturing capacity while expanding local participation in one of South Africa’s most important industrial sectors.
Source: BusinessTech