- Volkswagen and its Angolan partner ANCAR have announced that they are to build an assembly plant in the outskirts of Angola's capital, Luanda. ANCAR will invest US$ 48 million to build an assembly line for the production of VW and koda model vehicles, a central parts store, a training centre and an Angola-wide dealer network.
The Germany-based vehicle giant Volkswagen has announced its entrance in the Angolan market. The announced plans include an assembly line for semi knocked down (SKD) production of VW and koda models and the establishment of a dealer network to cover all of Angola. koda is a Czech car owned by Volkswagen.
Volkswagen, Europe's leading car maker, principally presented the announcement as a strategy "to establish a foothold in the Angolan market." The German company was to produce semi knocked down cars in Angola to be in a better position to enter the growing national car market, offering two of its cheaper models to Angolan consumers.
The Luanda-based company ANCAR, which is implementing the project process for Volkswagen in Angola, was said to invest US$ 48 million in an assembly line for VW and koda vehicles, a central parts store, a training centre and a nationwide dealer network, Volkswagen announced.
Plant construction will begin in Viana - in the outskirts of Luanda - in a few weeks, and Volkswagen said it hopes to start its semi knocked down car production in April. The plant's capacity will gradually be built up to 160 vehicles - including passenger cars, trucks and buses - per day. Annual output for this year is expected to be 10,000 vehicles and that total will climb to 20,000 vehicles in 2007.
ANCAR further announced that it was to give preference to former combatants in its hiring practices and expects to employ 2,500 Angolans directly. The investment should also indirectly generate an additional 4,000 jobs, according to Angola's state-run Agência National para o Investimento Privado.
Currently Angola imports over 100,000 vehicles each year, including used cars, according to Volkswagen officials. Angola so far does not have any car producing industry, as contrasted to the major vehicle producer South Africa.
The announcement of the development of this new industry was therefore strongly welcomed by Angolan authorities, which mostly depend on oil revenues. Volkswagen's announcement in Luanda was attended by Angolan Ministers, other business and political representatives and the ambassadors of Germany, the USA and the Czech Republic.
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