Swedish car manufacturer set up Sh2.5 billion assembly plant in Mombasa
The assembly plant will create approximately 300 direct jobs.
Claes Nilsson, Volvo Trucks President and CEO today announced the company was in the final stages of setting up a Sh2.5 billion assembly plant in Mombasa.
“We see great opportunities and believe that this part of Africa that has potential to grow substantially; it has a lot of different resources due to the diverse production of different products and natural resources,” Nilsson told a local daily.
He added that the firm will bring some of the top modern trucks that have specifications for the east African market.
“Business conditions here are that you have to have a manufacturing plant, unless you do that, you are not a serious player in this market.”
The plant is expected to be launched in the first quarter of 2018, targeting an output of 500 units per year.
The plant comes on the background of two major car manufactures last year also announcing that they will be setting their base in Kenya as well.
After four decades, the first locally assembled Volkswagen Polo Vivo five-door hatchback rolled out of its factories on the month of February.
A few days later, French Automaker, Peugeot announced they will also be assembling their cars in Kenya.
Volvo trucks assembly plant will be done through a partnership with NECST Motors who are now the exclusive importers of Volvo trucks in the Eastern African region.
The planned investment is expected to create approximately 300 direct jobs in addition to other indirect employment opportunities.
The firm is eyeing 20 percent market share in the next three to five years.
“We have been in East Africa for the last three decades and believe that there is a significant potential for the premium truck business as regional economies grow, infrastructure investments expand and the business environment remains investment friendly,” Nilsson added
Volvo Trucks regional office has already been opened in Nairobi and will be responsible for expanding the Swedish footprint of the brand in East Africa.
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