Hebei proposes to build an electrometallurgical plant in South Africa

Hebei Iron and Steel Group (Hebei), the largest steel producer in China, is planning a joint venture in South Africa to build a new plant.

The construction of the first stage of the project with a production capacity of 3 million tons of steel will begin in 2015, and the production of the plant may begin in 2017. The second phase, with a production capacity of 2 million tonnes of steel, is likely to begin in 2019, after the first phase of production is fully operational.



The Memorandum of Understanding was signed by Hebei iron and steel in Beijing jointly with the China-Africa Cooperation Fund for the Industrial Development of South Africa. In the joint venture, Hebei is likely to acquire a 51 percent stake, a company manager said, declining to comment on details.

The president of the company, Yu Yong, said that the company was concerned about the situation in the steel market, and the construction of the new facility is an important step for the company to go beyond the existing framework and establish the company's influence in all regions of the world.

IDC CEO Jeffrey Cewhena said he hopes the project will help the country reduce steel prices, serve as a backbone for the steel industry and related sectors in South Africa, and play an important role in nurturing new manufacturing talent.