Tuesday, January 24, 2012

2012 'make-or-break' year for Joule as it seeks govt commitment

2012 'make-or-break' year for Joule as it seeks govt commitment: "He adds that industrialising the Joule will cost around R3.5-billion, with the establishment of a plant to build the car for local and export markets requiring another R3.5-billion.

“We need to look at the Joule as another Sasol type project, where government supports it for 10, 20 or 30 years because it is of national interest to do so. If we build 50 000 cars a year, exporting 40 000, all with 70% local content, it will create many local job opportunities and industries.”

The last R2-billion funding required in the R9-billion budget envisaged to bring the Joule to market, will focus on retail and after-sales service, which “could easily be borrowed”, notes Meiring.

“We have a number of investors interested in the Joule,” he adds, “but they typically want government to put in 33% to 50% of the money first. We need about R3-billion to R4-billion from government, and we need an irrevocable commitment from government on providing the money. We either need a guarantee, black on white, or we need the money itself. It’s no longer enough to say that it is a good project.”"
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