Chinese automaker Chery Automobile Co. has formally taken over Nissan’s former vehicle manufacturing plant in Rosslyn, advancing its strategy to establish South Africa as its manufacturing hub for Africa and expand its presence across the continent.

The handover, completed on Friday, follows an agreement announced in January. Chery said it will invest millions of dollars to modernize the facility, install new production equipment and upgrade factory utilities before vehicle manufacturing starts in mid-2027.

The investment forms part of the company’s broader plan to position South Africa as its base for manufacturing, exports, research and development, and regional operations, according to a company statement. The expansion comes as Chinese automakers increase production capacity outside their domestic market, where slowing demand and fierce competition have prompted manufacturers to pursue growth opportunities overseas.

Automaker integrates NEV production in Rosslyn

Chery said it will retain all 692 employees currently working at the Rosslyn plant. As production ramps up, the project is expected to support nearly 3,000 direct and indirect jobs across manufacturing, supply chains and related services.

“Our long-term goal is to turn the Rosslyn plant into a complete auto center with research and development, supply chain operations and training, supporting Chery’s expanding presence and the goal of exceeding 100,000 annual vehicle sales in South Africa,” Chery Auto Vice President Charlie Zhang said during a handover ceremony attended by company executives, government officials and industry stakeholders.

The Rosslyn facility will initially manufacture the Jetour T series, including the T1, the Jaecoo J5 and the Chery Tiggo 4 sport utility vehicles. The Jaecoo J5 will be available in both internal combustion engine and new energy vehicle versions, reflecting growing demand for electrified vehicles in key markets.

Chery expands South African supplier network

Before production begins, Chery plans to complete extensive upgrades to the factory and its supporting infrastructure. Zhang told reporters the company will spend millions of dollars on the project but did not disclose the total investment. During the initial production phase, scheduled for the third and fourth quarters of 2027, the plant is expected to produce about 15,000 vehicles.

Chery is also expanding its local supplier network as part of the project. The company has launched a program aimed at achieving 40 percent local content during the first phase of production and is evaluating Tier 1 suppliers in South Africa. At the same time, it plans to introduce suppliers from China, particularly those specializing in electric vehicle and intelligent vehicle components, Chery Auto executive vice president Zhang Guibing told reporters.