Italian truck manufacturer Iveco has announced that it is at an advanced stage of setting up a Sh 2.3 Billion assembly plant in Mombasa, marking a comeback to the Kenyan market through its local distributor, Global Motors Centre.
The new plant is expected to create about 500 new jobs with official launch happening in June.
Forecasting greater demand of heavy commercial vehicles due to the expansion of Mombasa Port, the country’s leading logistic companies located in Mombasa are likely to increase their fleet while replacing the old fleet. Other companies have also been flocking to the Coastal town to explore opportunities of investment.
The CEO of Global Motors Hussein Abadi was yesterday quoted by various media houses saying they will deal in about five Iveco brands including; vans, pick-ups, buses, trucks and prime movers.
Industry officials say this is a big development for Kenya because the company is also expected to export trucks to other neighbouring countries.
In the past three months, a number of international auto makers have expressed interest to set up manufacturing plants in Kenya. Peugeot has began assembling family cars while India’s Ashok Leyland has announced plans to start operations in the country before June, in partnership with local companies.