A Port Elizabeth steel recycling and processing plant will soon begin expansions to the tune of R100m at its premises in the Coega special economic zone (SEZ).
Agni Steels SA recently received authorisation from the department of economic development, environmental affairs and tourism for the second and third phase of its plans, which are set to double its production of steel billets.
The first phase of the project, which consisted of the installation of a set of induction furnaces for the reclaiming of scrap metal, was authorised in 2009, after which the company invested an amount of R400m in this phase.
The induction furnaces had a capacity of 25 tons and produced 90,000 tons of mild steel billets a year.
However, the second phase, approved last month, will include the addition of two more sets of furnaces and a ladle-refining furnace.
The two additional furnaces will double production capacity to 180,000 tons of steel billets per year, as it will run alternately, allowing one set to be used for melting while the other is used to prepare materials for the melting process.
Once the project is completed, the plant will be able to locally convert the steel billets into reinforced steel, with the goal of exporting the finished product to local and regional markets.
The Coega Development Corporation’s (CDC) business development manager for metal projects, Sadick Davids, said the authorisation for the project’s next phases would bring good news to the Bay.
“The authorisation for their expansion means Agni Steels SA will be investing an additional R100m and creating an additional 150 jobs,” Davids said.
CDC head of communications Dr Ayanda Vilakazi added: “We appreciate the endless support the department has given us [as Coega SEZ].
“It shows their commitment to supporting our vision and mission, which is to create jobs and responsible investment opportunities.
“It also shows how the department is invested in the growth and development of the SEZ itself, and we are looking forward to their support in future.”
Vilakazi could not confirm when work on the second phase would begin.
“Due to be the budget not being finalised, we are not able to outline the commencement of the phases,” Vilakazi said.