Volkswagen South Africa has started construction of a R750-million water-based paint shop at its Uitenhage plant.

Volkswagen South Africa has started construction of a R750-million water-based paint shop at its Uitenhage plant.

Speaking on Tuesday, VWSA managing director Andreas Tostmann said the investment in the state-of-the-art facility formed part of the company’s two billion rand venture over the next two years.

The new paint shop will require workers with different skill levels, and though the company did not expect that current employees would lose their jobs, a maximum of 200 people would be redeployed.

"This investment will enable us to continue to bring new product to the market and to develop our facilities in Uitenhage to ensure that we are world-class suppliers of vehicles and components to both the domestic and world markets," said Tostmann.

He estimated that more than one-third of the R750-million investment would be sourced locally, with an international equipment manufacturer providing the balance.

The investment is expected to greatly improve the subsidiary’s flexibility as the new paint shop will be able to paint, and consequently allow the local plant to manufacture, a greater variety of cars. The production rate will also be improved, since the current paint shop operation has been creating a bottleneck in the manufacturing process.

The new plant will make considerable use of robotic technology and is expected to be operational in 2007. It will be fully compliant with international environmental requirements, and its new processes will ensure reduced levels of air and water pollution.

VWSA’s exports are also showing substantial growth. The company plans to export more than 40 000 vehicles this year, amounting to a year-on-year growth of 45 per cent.

According to Business Report, Tostmann said VWSA’s component exports would grow to about R2,7 billion - or eight per cent - in 2005.

Original article from Car