STEEL recycling and processing plant Agni Steel SA, located in Zone 6 of the Coega Special Economic Zone (SEZ) recently received authorisation for its Phase 2 and 3 expansion plan from the Department of Economic Development, Environmental Affairs and Tourism (DEDEAT).
In 2009, DEDEAT authorised the company’s Phase 1 development with amendments done in 2011.
Phase 1 consisted of the installation of a set of induction furnaces for reclaiming of scrap metal. The induction furnaces had a capacity of 25 tonnes and produced 90 000 tonnes of mild steel billets per year.
Phase 2, which was approved in June 2018, includes the addition of two sets of furnaces and a ladle-refining furnace. The two additional furnaces will perform the same function of the current, running alternately with one being used for melting whilst the other is prepared for the melting process.
The additional furnaces will thus double production and produce 180 000 tonnes of steel billets per year.
In addition to the furnaces, a ladle-refining furnace (LRF) will also be installed. Once all three phases are completed Agni Steels SA will be use a modernised rolling mill to locally convert the steels billets produced into reinforced steel for local and regional export consumption.
The DEDEAT authorisation sets out environmentally safe conditions with which Agni Steel SA will need to comply while undertaking their expansion in accordance with the objectives of the Environmental Management Act, Act 107 of 1998.
Coega Development Corporation (CDC) Business Development Manager for Metal Projects Sadick Davids said, “The authorisation for their expansion means Agni Steel SA will be investing an additional R100 million and creating an additional 150 jobs. This is consistent with CDC’s view that those investing in the SEZ not only grow but thrive as well”.
CDC Marketing, Brand and Communications Unit Head Ayanda Vilakazi said, “We appreciate the endless support the department has given us. 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”.