JOHANNESBURG, South Africa – Volkswagen of South Africa has produced its 25,000th 5-cyl. diesel engine for export.

The engine export contract, announced by VWSA Managing Director Andreas Tostmann in March, is worth more than 12 billion rand ($1.8 billion) over the next six years.

The engines are shipped weekly and supplied to the VW Group's Hannover, Germany, plant for use in the production of LT Panel Vans, which are imported by VWSA for sale on the South African market.

VWSA forecasts 35,000 engines will be shipped for export next year, reaching 440,000 units annually by 2010.