BMW accelerates expansion in Mozambique

Adam Leach is a freelance business journalist
12 August 2013

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BMW South Africa is expanding its supply chain in Africa by setting up a second export facility on the continent and increasing the number of cars it produces.

 

The plans, announced earlier this month, will see the South African division of the global car giant boost production from 50,000 units a year to more than 80,000 units by the end of this year. In order to manage the increase, the company will export around 14,000 vehicles, including the ‘3 Series Sedan’ model, from a new port in Maputo, Mozambique to complement its existing distribution operations in Durban, South Africa.

 

Bodo Donauer, managing director of BMW South Africa, said: “To play on a world stage, we need to ensure we are competitive in all elements of the manufacturing process, including supply chain and logistics. This means we have to develop top quality and productive ports which operate at high levels of efficiency at competitive prices to ensure a stable logistics environment.”

 

The company will use existing supplier Grindrod Freight Services for the logistics to support exports from Mozambique. Transnet will continue to support export operations in Durban, which will handle an extra 20,000 models over the year.

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