Economic Development Minister Ebrahim Patel has welcomed the reopening of the Highveld Steel plant, in eMalahleni, Mpumalanga.
The plant, which was officially reopened on Tuesday, employs 200 workers in direct production and a further 300 workers on site.
The company, which closed in 2015, has restarted production of structural steel products in partnership with business and government.
The relaunch of the plant comes a few days after government announced a new R1.5-billion steel competitiveness fund, further boosting confidence in the industry.
“The reopening of the Highveld Steel plant is an example of what can be done with focus and partnerships. When the plant was closed two years ago, government worked with industry to find solutions [to] restart operations,” Patel said.
He added that steel producer ArcelorMittal South Africa, which supplies primary material to the Highveld mill, saw the opening as an opportunity to provide input for the production of structural steel products and railway lines.
“This means we can now replace products that are currently imported and there may be further opportunities on the rest of the continent to export these products,” Patel noted.
Highveld and its partners are transforming the old steel mill complex into a new multipurpose industrial hub, comprising a steelworks, a coal storage depot for junior miners, a maintenance service centre for dumpster-trucks and a training centre that can address skills needs in the area.
“Steel is the foundation of any industrialisation plan and we have to retain and support our capability and industrial capacity at a time when global markets are still facing a supply glut.