Stock Markets July 3, 2026 02:30 PM

Chery Takes Control of Former Nissan Plant in Rosslyn, Plans Major Upgrade Ahead of 2027 Production

Chinese automaker commits to retain staff, invest millions and position South Africa as its African manufacturing and R&D hub

By Nina Shah
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Chery Auto has formally assumed ownership of the Nissan-built manufacturing facility in Rosslyn, South Africa, and announced plans to invest millions to refurbish and re-equip the plant. The company intends to begin vehicle production in mid-2027, retain all 692 current employees, and said the project will generate nearly 3,000 direct and indirect jobs across manufacturing, supply chains and services.

Chery Takes Control of Former Nissan Plant in Rosslyn, Plans Major Upgrade Ahead of 2027 Production
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Key Points

  • Chery officially took control of the Rosslyn plant and plans to invest millions to upgrade facilities and machinery before starting production in mid-2027.
  • The automaker will retain all 692 existing plant employees and expects the project to generate nearly 3,000 direct and indirect jobs across manufacturing, supply chains and related services.
  • Initial production will include Jetour T series models - T1, Jaecoo J5 and Chery Tiggo 4 - with the Jaecoo J5 offered in both ICE and NEV variants; a ramp-up in Q3-Q4 2027 targets about 15,000 vehicles.

China's Chery Auto completed the handover of the former Nissan vehicle manufacturing plant in Rosslyn on Friday, implementing a transaction disclosed earlier this year. Executives present at the takeover said Chery will inject millions of dollars into upgrades and new machinery as it prepares to begin manufacturing vehicles in South Africa in mid-2027.

The company described South Africa as the intended hub for its African operations, covering manufacturing, exports, research and development, and regional management. Chery, which is identified as China's largest car exporter in company comments, confirmed it will retain the plant's entire workforce of 692 employees.

Company leadership also projected a broader employment impact. Vice President Charlie Zhang said the Rosslyn project is expected to generate nearly 3,000 direct and indirect jobs spanning production, supplier networks and associated services. Zhang outlined an ambition to develop the site into an integrated auto centre that includes R&D, supply chain functions and workforce training - part of a longer-term objective to support Chery's growth and to exceed 100,000 annual vehicle sales in South Africa.

The takeover ceremony drew executives, government officials and industry stakeholders. Executives emphasized the company is responding to the need to expand beyond a domestic market showing intense competition and overcapacity by accelerating overseas investment and production footprints.

Chery plans to use the Rosslyn factory to initially assemble models from the Jetour T series, listing the T1, Jaecoo J5 and Chery Tiggo 4 sport utility vehicles. The Jaecoo J5 is slated to be produced in both internal combustion engine and new energy vehicle spec variants.

On the timing and scale of investment, executives said Chery will spend millions of dollars to upgrade the facility and utilities, but did not provide a precise capital figure. The company expects a production ramp-up in the third and fourth quarters of 2027, with a target output of about 15,000 vehicles during that phase.

To build local content and supplier networks, Chery has launched a programme aimed at achieving roughly 40% local content in the initial stage and is conducting surveys of tier-1 suppliers. The automaker also plans to import certain suppliers from China, particularly those providing components for electric and intelligent vehicle systems, according to comments from Executive Vice President Zhang Guibing.


Context and implications

The move represents a concrete step in Chery's strategy to expand manufacturing and market presence internationally by converting an existing facility and leveraging both local labour and imported supplier relationships. The focus on local content, supplier surveys and the staged ramp-up reflect a structured approach to re-establish production capability while integrating new technologies for ICE and NEV models.

Risks

  • Investment scale is unspecified - Chery said it will invest millions but did not disclose an exact amount, leaving capital allocation and financing plans unclear; this affects the manufacturing and industrial sectors.
  • The reliance on bringing in Chinese suppliers for electric and intelligent vehicle components may pose supply chain integration risks for local supplier development and the automotive parts sector.
  • Achieving the targeted local content level of around 40% represents an operational and procurement challenge during the initial stage and could affect timelines for production and supplier readiness in the automotive and manufacturing sectors.

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