Coega’s R1.1 billion stainless steel strip mill gets the nod

ED RICHARDSON
THE COEGA Industrial Development Zone has received authorisation from the Department of Environmental Affairs and Tourism (DEAT) for the R1.1 billion stainless steel precision strip mill following the completion of an environmental impact assessment study. The first and the second phases of construction will amount to R500 million each. A total of 500 jobs will hopefully be generated during construction and from the anticipated upstream and downstream industries that will flow from the project. Some 9000 tons of 400mm wide stainless steel coil will be produced in the first phase of the project. The plant is located within Zone 2 of the Coega IDZ and it will be a supplier to the first and second tier Automotive Component Manufacturers and other thin-strip steel related industries. Construction of the plant was originally expected to commence in July 2006 but it has now been postponed to early 2007, says Coega Development Corporation spokesperson Vuyelwa Qinga-Vika.