Car maker General Motors South Africa (GMSA) will be pumping R439m into two expansion projects at its Eastern Cape plants to spruce up its facilities for the production of the first Hummer H3.

This is their first left-hand-drive vehicle destined for export markets in Europe, the Middle East, Africa and Asia Pacific.

The expansion is expected to create more than 450 new permanent jobs in the Eastern Cape. The company will also invest in a tooling programme for parts and component suppliers, many of whom are based in the Eastern Cape.

Apart from these investments, the company will inject about R1m into skills development programmes for its employees. The investment at its Struandale and Kempston plants in Port Elizabeth is expected to bring much-needed foreign direct investment into the province and the country.

The Struandale plant is the only one outside North America that will be producing a mini version of the Hummer, which would be a smaller, cheaper, more fuel-efficient sports utility vehicle. An estimated 10000 units a year have been targeted for the export market, with the first batch expected in September 2006.

GMSA product communications manager Tim Hendon said its plants in Europe, Asia, the Middle East and Africa indicated there was a market for the Hummer. "We don't have orders yet. It's still too far away, but we believe we can sell them."

Hendon said the production of a right-hand-drive Hummer H3 for the South African market would begin in the last quarter next year. The company would also export them to markets such as New Zealand, the UK and Australia.

"There will no extra cost in making the cars right-handed," he said, adding that the vehicles would cost R500000 when they became available. The switch from leaded petrol to cleaner fuels next year, which required more sophisticated vehicle-engine technology, would not affect production costs.

GMSA operations director Michael Pearton said the investment was a big boost for the local operations in component localisation and in the expansion of information technology systems. "We are looking to harness this significant investment, in facilities, equipment and training, to produce only the very best quality vehicles."

The Hummer H1 and H2 models - adapted from the Humvee vehicle developed for military use - have been sold primarily in the US and Canada.