Coega secures R5.8 billion investment

Chlorine manufacturing deal signed ED RICHARDSON SINGAPOREAN company Straits Chemicals has signed a R5.8 billion agreement to build a chlorine manufacturing and water desalination plant at the Coega IDZ, after three years of discussions and negotiations. The plant puts Coega in a strong position to develop a chemicals cluster based on chlorine – particularly if it succeeds in attracting a fuel refinery. Oil and chlorine are the building blocks of a wide range of products, including plastics and vinyls. Coega already has a salt works to produce sodium chloride – another element in the production of products with chlorine. Other products in the “chlorine tree” include pharmaceuticals and fertilisers. Straits Chemicals will construct a technology plant at the IDZ to produce 600-tons of chlorine per day for both the foreign and domestic markets. The company is set to make use of technology that is safe for the environment, according to the Coega Development Corporation (CDC). The construction phase is expected to take at least 18 months and create 600 jobs. The total investment value in the Coega IDZ is R20.8 billion, says CDC spokesperson Vuyelwa Qinga-Vika.