Mercedes-Benz SA (MBSA) made its first venture into the East London Industrial Development Zone (Elidz) last week after leasing a facility to store its imported and export-bound cars.

The car manufacturer started running out of parking space in December last year due to increased production volumes of the C-Class units destined for the US market.

MBSA divisional manager for supply chain and sales support, Naeem Hassim, said the acquisition of a dedicated storage yard in East London was a strategic decision taken by the management board of MBSA.

"There is a definite need for a well- located storage facility in East London. The company looked at various options for a permanent solution for a secure vehicle-storage and distribution centre.

"The tailor-made solution proposed by the Elidz was the preferred option for MBSA and allows storage of vehicles in a fully secure environment," he said.

The site is situated in Zone 1A of the Elidz, which also hosts the Automotive Supplier Park and includes a gatehouse, administrative offices and a staff recreation area.

Further infrastructure on the site of 95000 square metres includes vehicle washing and inspection bays, as well as a loading area that can accommodate up to nine carrier vehicles simultaneously.

The investment provides for 2502 covered parking bays with an additional 956 uncovered bays.

The bulk earthworks for the project commenced in April and the facility is scheduled to be fully commissioned by November this year - although occupation of parts of the facility will occur from early August 2008.

MBSA will lease the storage facility for seven years with the option of renewing the contract.

Commenting on MBSA's acquisition, Elidz CEO Simphiwe Kondlo said: "This is a further example of the Elidz's commitment to business and the strengthening of its value proposition to the automotive sector.

"Since the inception of the Automotive Supplier Park and the investment by Foxtec-Ikhwezi in Zone 1F, the business partnership between the Elidz and MBSA has been strengthened, and we are proud to have provided another world class solution."

MBSA's venture into the Elidz follows the acquisition of four new investors worth R165 million which started operations in the Elidz at the end of last year. These newcomers brought the total number of confirmed investors in the zone to 14, with a combined value of R920m.