The Eastern Cape Department of Economic Development, Environmental Affairs and Tourism has authorised the phase 2 and 3 expansion of steel recycling and processing company Agni Steel South Africa.
Agni Steel’s plant is located in Zone 6 of the Coega Special Economic Zone.
Phase 1 of the plant involved the installation of a set of induction furnaces for reclaiming scrap metal. The induction furnaces have a capacity of 25 t and produce 90 000 t/y of mild steel billets.
Phase 2 will result in the addition of two sets of furnaces and a ladle-refining furnace.
The two additional furnaces will perform the same reclaiming function, but running alternately, with one being used for melting, while the other is prepared for the melting process. The additional furnaces will double production at the plant to 180 000 t/y of steel billets.
Once all three phases are completed, Agni Steels will use its modernised rolling mill to locally convert steel billets into reinforced steel for the local market, as well as for export to the regional market.
Agni Steel is expected to invest a further R100-million at the plant and create a further 150 jobs.