Hebei proposes to build up steel plant in South Africa

CAPE TOWN (Scarp Monster): The construction of the initial part of the project with a production capacity of 3 million ton steel, will start by 2015, and the production of the plant is likely to start by the year 2017. The production of the second phase, with a production capacity 2 million tons of steel, is likely to start by the year 2019, following the production of the first phase.

A memorandum regarding the project was signed by the company along with the China-Africa Development Fund and the Industrial Development Cooperation of South Africa in Beijing.

In the joint venture, Hebei iron and steel is likely to own 51% of the share, stated the manager of the company, but he refused to comment further about the details.

The president of the company, Yu Yong stated that, as far as the company was concerned, it was an important step for the company to step out of parent country to establish the company all around the world.

IDC’s Chief Executive Officer, Geoffrey Qhena stated that, this project would hopefully help the country in reducing the steel prices and also to energize the steel industries and sector of South Africa and also in bringing up job opportunities.