Volkswagen is to build a ZAR200m (US$24m) car parts distribution facility in Centurion, Gauteng Province, close to Johannesburg in South Africa.
The plant is expected to begin operating by the middle of 2010 and is estimated to have sales of ZAR1.8 bn ($220m) next year, the company said.
Volkswsagen also assembles vehicles at its plant in Uitenhage, close to Port Elizabeth.