Yamaha Motor Co has announced that it will begin manufacturing in Nigeria, Africa as part of a joint agreement with CFAO S.A. According to reports, the factory will officially open its doors in mid-2015.
This come on the heels of successful investment trend published by Financial Times of London over additional job creation recorded by the Japanese Nissan that began assemblage of their series of cars in Nigeria early this year.
The new company to be known as CFAO Yamaha Motor Nigeria Ltd. (CYMNG), and Yamaha Motor and CFAO (a French company, specialized in distribution of major international brands in Africa in the Toyota Tsusho Group) are to make equal investment contributions toward a start-up capital of $1 million.
The new CYMNG factory will cover an area of 2,790 square meters will be built in Lagos, Nigeria’s largest city. Scheduled to commence operation in summer 2015, the factory has a production target of 70,000 motorcycles by 2018.
In 1980, Yamaha Motor established a motorcycle factory in Nigeria that carried out manufacture and sale of motorcycles, however in 2005 the company pulled out of production due to a decline in the market – ever since Yamaha has been selling motorcycles imported from Japan or India through local dealerships. This joint venture represents Yamaha Motor’s second foray into the Nigerian market.
The population of Nigeria is currently 170 million, and explosive growth in the population and economy has contributed to heightened demand for motorcycles in the region. Demand is expected to skyrocket even further, due to the fact that motorcycles are fast taking over taxis as the number one form of transportation.