R/€ = 18.04
R/$ = 16.14
Au 1188.95 $/oz
Pt 924.50 $/oz
Feb 13, 2008
ArcelorMittal invests billions to expand SA capacityBack
© Reuse this With its very positive outlook on domestic demand and the comfort of higher steel prices as motivation, steel powerhouse ArcelorMittal South Africa will be making significant investments until 2011.
Speaking at its financial results presentation in Johannesburg CEO Rick Reato provided an overview of the upcoming expenditure, singling-out the plans for a new three-million tons a year furnace at Newcastle, to replace the existing two-million-tons-a-year N5 furnace, as one of the highlights.
The new furnace (N6) would come on stream in 2011, and Reato said that it would satisfy the future demand that was expected from local and Southern African markets.
In the meantime, however, a ‘mini' reline, worth R170-million and lasting 45 days, was currently under way at N5. Reato explained that the furnace was undergoing a mini-reline as, although ArcelorMittal had committed to putting in a new furnace, it needed capacity now and the reline would provide this for the next four to five years.
Between 2008 and 2011, some R450-million would be spent on furnace relines, R2-billion on maintaining capability, R2,9-billion on steel capacity increase, R2,7-billion on downstream value-adding projects and about R1-billion on environmental projects.
On flat products production, Reato said that some R600-million would be invested in direct-reduction iron kilns at Vanderbijlpark to double current capacity to 350 000 t. This should be completed by the third quarter of this year.
Some R275-million was being spent on the 70-day-long reline of Corex and Midrex at the Saldanha works - which Reato noted was currently under way.
Next year will see the start of the development of a new colour line, with a capacity of 100 000 t, at Vanderbijlpark which is due to come on line in 2010.
A new galavanising line will also be built at Vanderbijlpark - however, Reato noted that its exact capacity had not yet been calculated.
The first quarter of next year would also see an ore screen and stockhouse upgrade at Saldanha worth R50-million.
On the long products side, upcoming major investments include the Maputo mill in 2008, the new bar/section mill in 2011, the new billet caster in 2011 and the crane and gantry upgrade, worth R150-million, in the fourth quarter of this year.
Reato also outlined the environmental spend which included a sinter clean gas investment of R170-million at Vereeniging works, and electric arc furnace dust extraction at the Vanderbijlpark and Vereeniging plants. In 2009, some R75-million would be spent on calcium carbide desulphurisation at the Newcastle works and lastly, Reato noted that R100-million was to be spent on an evaporator crystalizer this year in order to achieve "0% effluent discharge status".
Edited by: Creamer Media Reporter© Reuse this
To subscribe email email@example.com or click here
To advertise email firstname.lastname@example.org or click here
Other Metals News
Updated 56 minutes ago Mining needs to be reinvented as a mutually transformative win-win for countries and companies to put an end to the resource curse, which has destroyed the collective creativity of resource-rich economies, causing them to fall behind their resource-poor counterparts,...
Updated 2 hours 30 minutes ago The Gupta family and the Economic Freedom Fighters (EFF) are expected to face off North Gauteng High court on Tuesday. The family, via their company Oakbay Investments, is understood to have filed an urgent application on behalf of their shareholders, businesses and...
Updated 2 hours 50 minutes ago The Roads Agency Limpopo's CEO has been dismissed and two of his colleagues suspended for alleged fraud, corruption, and collusion involving more than R40-million, the agency said on Monday. The trio allegedly flouted supply chain management policies, colluded,...
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...