Volvo Trucks operates a CKD facility in the small coastal town of Amanzimtoti, which is located about half an hour’s drive south of Durban. Speaking to AMS, plant manager S. Gangadhar describes the benefits of producing in the region: “Our facility is CKD, which means there are some advantages,” he states.

“Firstly, it encourages economic and employment opportunities, which is great for the local area. It is also good for us. We could use our operations in Europe to bring a complete built unit (CBU) into the country, but we would have to pay 12% customs import duty. With an operation like this you need to set up a factory and employ people, so the government gives us 0% import duty on parts.”