New mill opens in Nelson Mandela Bay

Coega Steels officially opened a R500-million rolling mill on 20 October, designed to expand production while reducing emissions through renewable energy use.

Production capacity and product range

The mill has annual production capacity of 150,000 tonnes and will produce reinforcing bars, angles, squares, rounds and flats for construction, manufacturing and infrastructure projects.

Investment breakdown and emissions advantage

The R500-million investment includes a R360-million rolling mill and refining processes. Coega Steels emits about 800kg of carbon dioxide per tonne of steel, versus 2.5 to 3.5 tonnes for conventional iron ore-based steelmaking.

Electricity is the emissions challenge

About 80 percent of Coega Steels' reported emissions stem from electricity purchased from Eskom and the municipality, according to director Amit Saini.

Saini's goal for the company

Amit Saini said the company aims to become among the cleanest steel producers in South Africa so customers in export markets demanding low-carbon products can build with confidence.

“to make Coega Steels among the cleanest steel producers in South Africa”

Manufacturing under pressure in the metro

Nelson Mandela Bay's manufacturing sector accounts for 22 percent of gross domestic product but faces mounting pressure from cheap imports, high electricity costs, inefficient logistics and policy uncertainty.

Business chamber calls for government action

Denise van Huyssteen, CEO of Nelson Mandela Bay Business Chamber, said government must move fast to address barriers including excessive red tape and complex policies affecting business.

Direct and indirect job creation

The new rolling mill is expected to create 300 direct jobs, with a further 300 indirect jobs anticipated. About 240 direct employees will be South African workers, with 60 to 80 skilled specialists recruited overseas.

Local sourcing and skills development

Amit Saini said the company aims to source about 90 percent of its local workforce from Nelson Mandela Bay, recruiting elsewhere only where requisite technical skills are available.

Saini on what the mill means for the region

Saini said the mill means jobs, skills and opportunity for Nelson Mandela Bay, new customers for local suppliers and small businesses, and proof that heavy industry can grow in the Eastern Cape.

“For Nelson Mandela Bay, the mill means jobs, skills and opportunity at a time when the metro needs them the most.”

Existing jobs retained and supply chain support

Van Huyssteen said the investment would retain the existing 750 jobs at Coega Steels operations and support more than 2,000 jobs among direct and indirect suppliers across the value chain.

Transformer dispute resolved

Thsonono Buyeye, the metro's MMC for public health, said the chapter was closed on a public fallout over the lease of a municipal transformer to Coega Steels.