COEGA Steels officially inaugurated its new rolling mill in Nelson Mandela Bay yesterday as part of a R500 million investment to expand its steelmaking capabilities.
The investment includes the R360 million rolling mill and additional refining processes at the steelmaker’s existing melting facility.
The development brings the total investment at its Zone 6 premises in the Coega Special Economic Zone to R1.5 billion.
Coega Steels began scrap-to-billet production in 2014, backed by a R400 million capital injection.
The rolling mill now enables the company to transform steel billets manufactured from recycled scrap metal into finished products for the construction, manufacturing, engineering and infrastructure sectors.
The facility, which has an annual production capacity of 150,000 tonnes, will produce reinforcing bars, angles, squares, round bars and flat bars.
Director Amit Saini said the development was particularly significant for the Eastern Cape, as the new facility is the province’s only rolling mill.
The Eastern Cape had previously relied heavily on finished steel products from other parts of the country.
He said the province’s lack of a rolling mill made it difficult for Coega Steels to compete in certain domestic markets because transporting billets to processing facilities elsewhere was costly.
“With the rolling mill, we can supply the Eastern Cape market and the coastline directly from Nelson Mandela Bay.”
The company could now sell its billets or process them into finished products, he said.
During a guided tour, guests saw the rolling mill producing reinforcing bars used in construction and infrastructure projects.
The new facility will employ about 300 people, with some positions already filled and the remainder expected to be taken up by the end of the year.
Coega Steels’ total workforce is projected to increase from about 750 to 900 over the next year, while its operations support more than 2,000 indirect jobs.
Saini said 70 to 80 per cent of the rolling mill’s workforce would be South Africans, with the rest being skilled employees recruited from overseas.
The company will continue developing local expertise so South African employees can increasingly take responsibility for operating the plant.
“We have developed a lot of skills locally over the years and I’m sure that in the coming years we’ll train more locals and upskill them to run the plant independently,” he said.
The company also remains committed to reducing its environmental footprint by using recycled steel and renewable energy.
Traditional iron ore-based steelmaking can generate from 2.5 to 3.5 tonnes of carbon dioxide for every tonne of steel produced, he said.
By comparison, Coega Steels currently generates about 800kg of CO2 per tonne.
However, about 80 per cent of those emissions come from electricity purchased from the municipality, which is supplied by Eskom.
The company is therefore expanding its investment in renewable energy to reduce its reliance on coal-based electricity.
It currently has about 8 MWp of solar capacity installed at its operations and plans to add another 19.8 MWp by the end of 2027.
The company has also installed 50 MWh of Battery Energy Storage System (BESS), which will be operational by the end of October 2026.
The goal was very clear, Saini said.
“To make Coega Steels one of the cleanest steel producers in South Africa so our customers here and in export markets that increasingly demand low-carbon emission products can build with confidence and a clear conscience.”
The rolling mill, in development since March 2024, is currently undergoing production trials.
It operates on a 12-hour shift, with plans to move to 24-hour production in the coming weeks.
Guest of honour Captain Salvatore Sarno, chairman of Mediterranean Shipping Company (MSC) SA and the Indian Ocean Islands, congratulated the company on its expansion.
Sarno, whose company has supported Coega Steels’ international exports, praised the vision and determination behind the development.
Nelson Mandela Bay mayoral committee member Thsonono Buyeye welcomed the investment and emphasised the importance of business-government cooperation in stimulating economic growth.
“For our cities to prosper, we need the business community to work with us.”
He said such investments showed the important contribution businesses could make in addressing unemployment and creating economic opportunities in the metro.
Coega Steels shareholder Ku Tha Ilangovan, representing India’s Agni Steels, reflected on the company’s growth over the past 12 years.
“With R1.5 billion invested on this site, the rolling mill closes the loop from scrap to a finished product at Coega,” he said.
“As shareholders, we did not invest in a building or machinery. We have invested in people.”
