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Agni Steels SA Pty (Ltd) AGNI-Steels (SA) has commenced construction of a R400-million steel plant in the Coega Industrial Development Zone (IDZ) on 1st June 2011 that will create 800 jobs once fully operational.

The project is a joint venture between Agni Steels Pvt Ltd (India) and a local Nelson Mandela Bay BEE Consortium with the Industrial Development Corporation (IDC) having a 10% stake and a further 10% being reserved for a workers’ trust. The construction contract was awarded to CONAF Trading CC, a locally based construction company, who have extensive experience in Civil and Structural Engineering.

The project will be implemented in three phases over a five year period and the plant will be operational within 9-12 months with the steel billets produced being exported to India and other African countries during the first phase of the project. Once all 3 phases are completed Agni Steels SA would, using modernized rolling mill technology, locally convert the steels billets produced into reinforced steel for local consumption.

Agni Steels (India) is one the leading secondary steel manufacturers in the South of India and has built up an excellent reputation for the quality of their steel products under the brand “AGNI TMT” in that region.

They have been operating for the past 20 years in the steel industry and were the first secondary steel manufacturer of Mild Steel Billets in India to receive ISO certification.

The plant would use 9 000 tons of scrap metal a month during the first phase and this would double to 18 000 tons in phase 2.

Instead of the scrap metal being exported it will be locally beneficiated thereby adding value to locally available resources that are simply exported currently. In addition new technology will be brought to South Africa which will further job creation and skills transfer to local South Africans. Programmes in terms of which local employees would be taken to India for training prior to commissioning are being investigated currently.

Agni Steels SA Pty (Ltd) will be the first Mini Steel melting unit to be commissioned in the industrial history of the Eastern Cape and will be the first project in the metals cluster planned for Zone 6.
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