The zones are aimed mainly at attracting foreign investment in manufacturing.

German company Otto Fuchs, together with empowerment group Ikhwezi Investment, will form a joint venture, Foxtech SA, to build a R112m car-parts plant at the zone, management of the zone said yesterday.

This brings total investment in manufacturing at the 400ha zone to date to R300m.

CEO Simphiwe Kondlo said the development zone had now paid for itself as it had been developed at a cost of about R200m. Management is talking to about 30 potential investors, of which at least seven are in the automotive sector, he said.

Government is ploughing more than R7bn into the development of the country’s four zones. The bulk of these funds are allocated to the Coega zone, which has secured only one investor to date despite years of effort.

The East London zone’s efforts to attract investors are helped by car maker DaimlerChrysler’s preparations to start manufacturing a new Mercedes-Benz model in 2007. The development zone is about 5km from DaimlerChrysler’s plant.

The East London zone said Foxtech SA was the second car industry investment secured by the zone on the back of the car maker’s new programme, which is expected to commence in 2007.

The latest investment is expected to create at least 100 jobs.