First Automotive Works (FAW) has opened its ZAR600m (US$56m) assembly plant in Zone 2 of the Coega Development's Industrial Development Zone in South Africa.

According to iafrica.com, FAW vehicle manufacturers SA CEO Yusheng Zhang said: "We could have gone to Kenya or Tanzania where FAW has been present in sales and service for over 30 years - but in the end we chose South Africa because of the infrastructure. It then came down to a choice between East London and Coega."

The company is expected to manufacture 5,000 trucks per year under the project's first phase. The plant is expected to create 280 jobs.

In a second phase, 30,000 light commercial and passenger vehicles are expected to be manufactured per year. This will require FAW to make additional investment.