IN A huge boost for the Eastern Cape and the country’s motor industry, Volkswagen South Africa announced yesterday that it had been awarded the export contract for up to 300000 cars.

The right-hand-drive Polos will go to leading markets around the world.

VWSA managing director David Powels said yesterday that 19000 of the new Polos – still to be launched on the domestic market – would be exported from the company’s Uitenhage plant by year end.

This would be followed by 55000 a year from next year, a doubling in exports. And 77% of the 70% local content of the vehicles will be able to be labelled as being “made in Mandela Bay”.

Powels made the announcement at the official opening of a new industrial and logistics park at Uitenhage in which the government, state institutions and international companies have invested R600-million.

The Polo export contract – with an estimated value of R30-billion, according to industry observers – is for the duration of the new model’s life, which is likely to be six to seven years.

Powels said no immediate jobs would result directly from the export programme. However, with the 55000 exports and a 10% increase in production for the domestic market planned for next year, further jobs could be created at the plant. Total production was scheduled at present to reach 90000 units next year.

In the meantime, Powels said, the export contract had safeguarded jobs possibly in jeopardy because of the plummeting domestic market. However, 685 jobs had been created at the Nelson Mandela Bay Logistics Park, adjacent to the company’s plant. This had been crucial in VWSA being awarded the export contract from among a wide range of plant choices around the world.

Countries to which the vehicles will be exported include Britain, Ireland, Australia, New Zealand, Malaysia and Singapore.

Powels said the new Polo would be launched in South Africa early next year, but production had been under way since July, with the first units built for the export markets.

VWSA has invested R3,5-billion in the last three years and Powels said a further R500-million would be invested next year. “The new programme will result in the doubling of total exports from approximately 28500 in 2009 to 55000.

“One of the key factors enabling VWSA to capture the Volkswagen Group global contract for right- hand-drive Polos has been the investment in the Nelson Mandela Bay Logistics Park by a number of suppliers. This has been a crucial step in the process of enabling VWSA to become a globally competitive manufacturer of vehicles in the Eastern Cape.”

Powels said the awarding of the contract had “illustrated the VW worldwide group’s confidence in VWSA as a manufacturing base”.

Mayor Nomdumiso Maphazi said she was delighted and deeply appreciated the VWSA announcement and also the opening of the new logistics and industrial park. She was particularly pleased that the export contract and the creation of jobs at the park helped address the “imbalance” that existed in Mandela Bay in focusing on Uitenhage.

PE Regional Chamber of Commerce and Industry chief executive Kevin Hustler said the contract showed VWSA and the region’s component suppliers were up to international standard. The logistics park had helped VWSA secure the contract and “should act as a catalyst for further developments”.