Steel recycling and processing plant, Agni Steel SA located in Zone 6 of the Coega SEZ, has been given the green light to expand its operations.

The Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) granted the Agni Steel SA authorisation for both its Phase 2 and Phase 3 expansion plans.

Phase 2, which was approved in June 2018, will include the addition of two sets of furnaces and a ladle-refining furnace.

Producing reinforced steel

The two additional furnaces will perform the same function of the current, running alternately with one being used for melting while the other is prepared for the melting process. The additional furnaces will thus double production and produce 180 000 tonnes of steel billets per year.

In addition to the furnaces, a ladle-refining furnace (LRF) will also be installed.  Once all three phases are completed, Agni Steels SA will be able to convert the steel billet produced into reinforced steel for local and regional exportation using a modernised rolling mill.

The authorisation by DEDEAT’s sets out environmentally safe conditions which Agni Steel SA will need to comply with whilst undertaking their expansion which is in accordance to the objectives of the Environmental Management Act, Act 107 of 1998.

Job creation

Business Development Manager for Metal Projects, Sadick Davids expressed enthusiasm for the approved expansion commenting on its investment and job creation opportunity.

“The authorisation for their expansion means Agni Steel SA will be investing an additional R100 million and creating an additional 150 jobs. This is consistent with CDC’s view that those investing in the SEZ not only grow but thrive as well”, he said.

Agni Steel SA’s R400 million Phase 1 investment has created over 320 jobs.

Phase 1 consisted of the installation of a set of induction furnaces for reclaiming of scrap metal. The induction furnaces had a capacity of 25 tonnes and produced 90 000 tonnes of mild steel billets per year.