Oct

New Pamodzi/FAW venture to focus on upping sales in sub-Equatorial Africa

2014-10-03 12:04
All the ‘big-wigs’ were there for the signing of the new venture between FAW South Africa and the Pamodzi Group. From left: FAW deputy CEO Jianyu Hao; FAW executive director Richard Leiter; Minister of Defence and Military Veterans, Minister Nosiviwe Masipa-Nqakula; FAW CEO, Yusheng Zhang; and FAW CFO, Haichuan Teng.

FAW South Africa, a subsidiary of the China FAW Group, has set up a new company with the Pamodzi Group to focus on business for trucks in South Africa and other countries in sub-Equatorial Africa. The new company, Pamodzi-FAW (Pty) Ltd, has a structured shareholding of 51% held by Pamodzi and 49% held by FAW SA.

The official announcement of the cooperative venture was made at the recent African International Aerospace Defence Exhibition (AIAD) held at the Waterkloof Air Force Base where the new company had three trucks on display based on 6×6, 4×4, and 6×4 460hp truck tractor chassis cab configurations.

“We see Pamodzi-FAW as a total business partnership and not a BEE venture,” explains Ndaba Ntsele, chairman of Pamodzi–FAW who was involved in setting up the Pamodzi Group in 1979 and has been a driving force in expanding the group’s activities into a host of businesses with a wide spread of interests over the ensuing 35 years.

“We view Pamodzi-FAW (Pty) Ltd as an important building brick aligned to government imperatives that prioritise localisation, as well as industrialisation, which are key when addressing issues such as skills transfer, employment and poverty alleviation.”

Pamodzi–FAW SA (Pty) Ltd will be involved in handling Africa business relations including dealing with government departments, parastatals, private businesses and companies and governments in Africa north of South Africa’s borders – including those in Mozambique, Zimbabwe, Botswana, Zambia, Namibia and Angola.

FAW SA, which was established 20 years ago and recently opened a new factory in Coega in the Eastern Cape costing more than R673-million. The initial planned capacity for the plant is for the production of up to 5 000 trucks a year. FAW SA’s largest shareholder, the China FAW Group, a state-owned company, is the oldest and largest vehicle manufacturer in China, having been established in 1953.

Pamodzi, on the other hand, is known globally as one of the leading black owned and managed companies which has done many pioneering deals over the years and are involved in many companies across this continent.

One might wonder why the new company was exhibiting at the African International Aerospace Defence Exhibition. In this regard, FAW says it has a long history of supplying vehicles to the armed forces where a host of vehicle requirements are needed ranging from peace- keeping, stabilisation and humanitarian aid through to combat operations.

“We believe Pamodzi-FAW is in a good position to be a major supplier of military vehicles in sub-Saharan Africa as we have 30 FAW dealerships in the region offering sales and service or service only,” says FAW CEO Yusheng Zhang. “They are backed up by a parts warehouse in Spartan with almost R80-million in stock with parts hubs in Cape Town and Durban.”

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