Volkswagen is to build a ZAR200m (US$24m) car parts distribution facility in Centurion, Gauteng Province, close to Johannesburg in South Africa.
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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.