Coega Steels has invested R500 million in expanding its steel production capabilities in Nelson Mandela Bay, opening a new rolling mill that will allow the company to transform recycled scrap metal into finished steel products for the construction, manufacturing, engineering and infrastructure sectors.
The development brings the total investment at its Zone 6 premises in the Coega Special Economic Zone to R1.5 billion.
The R360m rolling mill, which opened on 20 October, complements additional refining processes at the company’s existing melting plant. With an annual production capacity of 150 000 tonnes, the mill will produce reinforcing bars, angles, squares, round bars and flat bars.
Coega Steels began operating in 2014 with the production of steel billets from recycled scrap metal. The new mill is expected to strengthen the Gqeberha-based manufacturer’s ability to supply customers in the Eastern Cape and along the coastline with finished steel products in a local market that has historically relied on such material being brought in from elsewhere in South Africa.
Coega Steels shareholder Ku Tha Ilangovan, a representative of India’s Agni Steels, reflected on the company’s growth over the past 12 years and its recent investment.
“With R1.5 billion invested on this site, the rolling mill closes the loop from scrap to a finished product at Coega,” he said.
Provincial significance
Company director Amit Saini said the opening of the new facility marked a significant step for the Eastern Cape as it is the only rolling mill in the province. This development would help to address the logistical costs that had previously constrained the company’s competitiveness in certain domestic markets.
“With the rolling mill, we can supply the Eastern Cape market and the coastline directly from Nelson Mandela Bay,” said Saini.
The company could now sell its billets or process them into finished products, he added.
The rolling mill, which has been in development since March 2024, is undergoing production trials on a 12-hour shift, with plans to move to 24-hour production in the coming weeks.
Job creation
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, the company said.
The steel‑billet manufacturer projects its total workforce to increase to 900 from about 750 over the next year, while its operations support more than 2 000 indirect jobs. Between 70 and 80% of the rolling mill’s workforce will comprise South Africans, with the rest consisting of skilled employees recruited from overseas, said Saini.
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,” Saini said.
Renewable energy push
According to the company, it is committed to reducing its environmental footprint through the use of recycled steel and renewable energy.
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.”
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% of those emissions come from electricity purchased from the municipality, which is supplied by Eskom.
The company is expanding its investment in renewable energy to reduce its reliance on coal-based electricity. To reduce its reliance on Eskom as well as its environmental footprint, the company has installed about 8MWp of solar capacity installed at its operations, with plans to add another 19.8MWp by the end of 2027. The company has also installed a 50MWh battery energy-storage system, which will be operational by the end of October 2026.
enzokuhle.sabela@nationalmg.co.za
Enzokuhle Sabela
thenational.co.za