Metal Coating Plant
Pretoria – Trade and Industry Minister Rob Davies opened the R1 billion metal coating facility operated by Safal Steel in Cato Ridge, KwaZulu-Natal on Monday.
The facility has a capacity of 150 000 tons a year of both un-painted and painted coated coil, which is sold on to the roofing and general engineering sectors. There are plans to double the volumes to 300 000 tons in the near future.
Speaking at the opening of the facility, Davies said the steel industry was one of largest manufacturing sectors in the domestic economy and critical from an economic development point of view.
“… The facility is manufacturing and supplying coated steel roofing to both the local and global markets with 60 percent of the product targeted for the local market and the balance for exports. The facility has already created 370 jobs, mainly employing people from local community, Durban and Pietermaritzburg,” he said.
Davies emphasised the linkages between infrastructure development and manufacturing and that investment projects that enhance productive capacity such as the metal coating facility be noted and supported.
The minister said the event was testimony to the important partnership that has been built between business and government and the role that business is playing towards the country’s economic and industrial development.
“This investment, supported by the dti and in which the Industrial Development Corporation (IDC) also participated, clearly demonstrates Safal Group’s confidence in South Africa as an investment destination and the maturity of our steel industry.”
Through the dti’s Enterprise Investment Programme, R30 million was approved for this investment of which R22.5 million have been paid and R9 million support was granted under the Critical Infrastructure Programme. The IDC also provided significant funding facilities for the project.
Davies said his department understood the significance of this project and would assist in dealing with challenges that may hinder its long-term viability.
Safal Group is currently operating in 16 African countries. – BuaNews
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