Confirmation awaited for R1,8bn Ferrostaal projects

PLANS TO build two stainless steel plants costing R1,8-billion at Coega have been confirmed by the department of trade and industry. A third steel plant costing R2,5-billion is in the pipeline. The department said it had negotiated the investments - the first to be formally announced for the Coega Industrial Development Zone (IDZ) - as part of the counter-trade flowing from the arms deal. The plants will be constructed by Ferrostaal as part of the counter-trade offered by the German submarine consortium. In a briefing document the department said studies were in progress for the establishment of a R1-billion ultra-thin precision stainless steel strip facility to produce steel for products such as razor blades and automotive parts. The plant will employ about 200 people. The briefing document states that the second investment of R800-million will employ 250 people producing refrigerator stainless steel containers for use in transporting perishables. It added that another R2,5-billion project to manufacture special steel for export was also under negotiation between the department and Ferrostaal which might also be sited at Coega. Meanwhile, both the Coega Development Corporation and Godongwana have warned that it would, in the words of Godongwana "be premature to celebrate until they have made a final decision".