Business / Auto China

I'll supply the truck, you supply the parts

By Xing Zhigang and Li Jiabao (China Daily) Updated: 2014-05-27 07:12

Building African infrastructure feeds demand for heavy vehicles to the benefit of one international partnership, Xing Zhigang and Li Jiabao report from Johannesburg

A South African truck assembler backed by Chinese parts suppliers said it is committed to building vehicles ideal for use on Africa's toughest terrain. The company also said it is seeking to reinforce its brand image on the continent with a variety of new products.

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"The customers have accepted the quality of our products. It's the brand that needs to be reinforced," said Alan Parry of Ever Star Industries (Pty) Ltd in an interview at the company's office in Centurion, between Pretoria and Midrand, Johannesburg.

Acquiring a local brand is a good strategy for Chinese businesses entering South Africa because locals "like to buy established brands, which make them comfortable", said Parry, Ever Star's general manager of human resources and administration.

Ever Star was part of Super Group, a transport logistics and mobility group, in South Africa. But the division was struggling, and the business was restructured. A new management structure debuted in August 2010.

Ever Star has the support of China Development Bank Corp and the China-Africa Development Fund, both of which pledged financial backing. In addition, the deal involved China North Vehicle Corp Ltd, also known as Norinco Motors.

Ever Star primarily has two operations: the head office and Johannesburg dealership, and an assembly plant in Pietermaritzburg that also includes a dealership.

The other dealerships are independent, Parry said.

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