CONSTRUCTION: Afripalm in R21bn Steel Project
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Afripalm Horizons (Pty) Ltd, a subsidiary of Afripalm Resources (Pty) Ltd today announced the signing of a Memorandum of Understanding (MoU) with the Steel Authority of India Limited (SAIL), with a view to setting up a 3 to 5million tonnes per annum steel manufacturing plant in South Africa.
It is estimated that the envisaged plant will require an investment of close to R21 billion and will result in the creation of 3 000 to 4 000 new jobs in South Africa.
SAIL is India’s largest steel producer having core competencies in the steel manufacturing business and currently operates five integrated steel plants across India.
SAIL is currently also exploring investment opportunities in Indonesia; Oman and Mongolia.
Mr V Gupta, the Indian High Commissioner to South Africa who was instrumental in facilitating this Agreement said, “India and South Africa share a common and historical bond. This Agreement represents one of the largest inbound investments into South Africa and we are excited at the prospect of Companies from our 2 respective markets forging such a close association. Transactions of this nature serve to bring our 2 countries and markets closer together”.
Lazarus Zim, Chairman of Afripalm Resources, also expressed his appreciation for SAIL having made the decision to enter South Africa. “I’m delighted at the prospect of servicing the domestic and International markets to ensure the introduction of healthy competition in the local market”
The Parties have jointly agreed to commission a detailed feasibility study on the proposed plant, which is expected to be completed in the next six months.
For the interim however, the Parties have agreed to establish a South African based distribution and trading facility that will provide the South African market access to the range of products currently manufactured by SAIL.
Business News Sector Tags: Business| Construction|