Auto maker Stellantis said this week it had reached a preliminary agreement with authorities in South Africa to establish its first production facility in the country by the end of 2025.
The new site is to be built in one of South Africa’s special economic zones and will produce vehicles for both the local market and for export, Stellantis said.
“The manufacturing site in South Africa will be a new building block in our industrialization strategy that includes the plan to sell one million vehicles in the region by 2030 with 70% regional production autonomy and will bring us closer to our customers’ needs in the region,” Stellantis Middle East and Africa Chief Operating Officer Samir Cherfan was quoted as saying by Reuters.
At present, the Franco-Italian company has 9 plants in its Middle East and Africa region.
As of 9:19 GMT on Thursday the shares of Stellantis NV (STLAM) were retreating 1.10% (EUR 0.192), while extending the losses from the previous three sessions, to trade at EUR 17.298 in Milan.
The shares of Stellantis NV went down 20.51% in 2022, compared with a 13.31% loss for the benchmark index, FTSE MIB (FTMIB).
In New York, the auto maker’s shares closed 0.43% ($0.08) higher at $18.51 on Wednesday, with the company’s total market cap now standing at $58.20 billion.