Steel producer ArcelorMittal South Africa (AMSA) on Friday unveiled the completed first phase of its new 1 600 m² steel industry incubation hub, in Vanderbijlpark, which has been set up to help develop industrialists to be absorbed into its procurement supply chain.

The R30-million Matlafatso Incubation Hub, co-funded by the Department of Trade and Industry, was operationally launched in February, has provided tailored development support to an initial ten on-site and two virtual-based future industrialists within the steel and manufacturing sector to “bridge the journey from start-up to industrialist”.

The first incubations, four months in, have, in effect, created 77 direct jobs for the region, which currently has the highest unemployment rate in Gauteng.

Gauteng Finance MEC Barbara Creecy, AMSA transformation group manager Freddie Swart, AMSA director Nomavuso Mnxasana and Sedibeng executive mayor Busisiwe Modisakeng showed off the facility, which is located in the Emfuleni municipal region, on Friday.

The hub, an outcome of a public–private partnership and headed up by Swart, will put qualifying participants through an intensive 24-month development programme, providing dedicated workshops and the use of an 800 m² communal workshop space equipped with industrial manufacturing equipment.

The emerging industrialists participating in the programme will also have access to industrial markets, holistic development support, bridging finance during the early stages of growth and capital equipment, as well as classroom, group and in-task experiential learning opportunities.

“The Matlafatso Incubation Hub forms part of AMSA’s commitment to ensuring that the South African steel industry thrives by facilitating new entrants who can effectively and actively participate in the growth and development of the sector,” AMSA CEO Wim de Klerk said in a post-launch statement.

The hub, which is also part of AMSA’s preferential procurement strategy, had initially received more than 350 applicants after opening its doors, with only ten from the Sedibeng community selected following a stringent selection process and another two selected to undertake the programme on a virtual basis.

Swart assured that plans were in place to expand and diversify the incubation hub to include an innovation centre specifically geared towards start-up enterprises and grow its virtual capabilities to allow industrialists to be developed at their own sites.

Work on the innovation centre will begin on site in August, while the virtual component will be fully leveraged next year.

“As South Africa’s largest steel producer, it is incumbent upon the company to ensure that the steel industry can introduce new, highly skilled and qualified entrants who are equipped to provide goods and services and can be incorporated into AMSA’s procurement supply chain, as well as those of other companies,” De Klerk added.

The Matlafatso hub currently incubates a range of diverse businesses, including steel and fabrication companies, a local scrap metal collection consortium, a construction company and a black women-owned auctioneering business.