Photo by: Duane Daws
South African steel products manufacturer Scaw Metals on Wednesday broke ground at the site of its new 50 000 t/y grinding media manufacturing plant, in Tema, Ghana.
Scaw already had a local presence in the country through its Tema sales office, which was established in 2011; however, this would be the company’s first West African manufacturing facility.
Construction on the $40-million facility, which Scaw was establishing in partnership with Ghana-based Jospong Group of Companies and South Africa-based Guma Group, would start early next year. The facility was expected to become operational within 18 months.
Scaw held a 70% stake in the project with Jospong and Guma holding the balance, Scaw executive chairperson Ufikile Khumalo said, adding that the company’s partners would not only share in the benefits, but would also be required to put up their share of the project funding.
The consortium would also be given first preference to supply products and services during and after the facility’s construction.
“We are delighted that we will be opening a plant in Ghana and this is outbound investment for a South African entity. The Ghanaian government has made a great push for the local manufacturing industry to stimulate economic growth and provide job creation,” Scaw CEO Markus Hannemann commented.
He added that the Ghana facility would make use of the same roll form technology that was currently in use at the company’s Wadeville, Johannesburg, facility.
South African Trade and Industry Minister Dr Rob Davies pointed out that South Africa was part of a consensus on the African continent that the next wave of development had to be driven by industrialisation and value-addition and not only the export of raw materials and the import of finished products.
He said that, through this project, Scaw was promoting downstream beneficiation.
“This project will allow Scaw Metals to produce in Ghana that which is currently being imported from South Africa,” he pointed out, adding that South Africa would, however, still benefit, as it would provide the raw materials.
“This [project] will take the continent a step further up the value-chain towards industrialisation,” the Minister said.
“Through this plant, Scaw Metals is also providing the Ghanaian government with the opportunity to insist on local content being used in mining projects, as is currently being done in South Africa,” added Khumalo.
He said Ghana was a natural fit for Scaw to establish a manufacturing facility, as it would move the company closer to its customers in the region.
He explained that the new plant would produce grinding media in sizes ranging from 38 mm to 76 mm, with the larger sizes still to be imported from South Africa. “However, if the demand for larger sizes increases, adapting the plant to also produce larger sizes will be the natural next step for Scaw.”
During the construction phase, more than 100 jobs would be created with 42 direct jobs to be created once the plant was operational.
“The South African expats working on the project will also transfer the process knowledge to the locals, to eventually hand the plant over to a local team,” Khumalo said.
“About six months before the plant opening, Scaw will also take members of the Ghana facility’s team to the plant in South Africa for on-the-job training,” Hannemann told Engineering News Online.
“This is the first leg of Scaw’s full presence in Ghana and we are exploring other ventures. Scaw is committed to investing in Ghana,” he added.