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Business confidence soars at the Coega SEZ - published 28 Jul 2022

Business confidence soars at the Coega SEZ


COEGA STEELS (PTY) LTD: Coega Steels anticipates commencing construction of Phase 3 in the first quarter of 2023, after the completion of Phase 2 in the second quarter of 2022.



Gqeberha, South Africa, 28 July 2022 - Coega Steels (Pty) Ltd, located in Zone 6 of the Coega SEZ - a leading SEZ in Africa, applied for environmental authorisation in early 2017 for the construction of its planned 2nd and 3rd phases of development. Coega Steels (Pty) Ltd is the leading manufacturer of steel billets in South Africa for export into Africa and Europe.

Environmental authorisation was granted to Coega Steels (Pty) Ltd for the construction of both these phases on 12 June 2018. Phase 3 will add a modernised rolling mill to convert the current steel billets into reinforced steel and lifestyle steel structures for local, regional and export markets.

Phase 2 was completed in the second quarter of 2022 owing to delays brought on by the COVID-19 pandemic. This phase included the expansion of the initial building to house an additional two 25-ton induction furnaces enabling Coega Steels to increase its production capacity two-fold, from 120,000 metric tonnes to 240,000 metric tonnes, annually. To accommodate this increase in production, the stores warehouse was expanded as well as the pump house.

The projected investment for the 2nd phase is R100 million and is expected to create at least 150 additional job opportunities. A total of 511 jobs have been created to-date since the launch of Coega Steels at Coega in 2014. This number of jobs is expected to increase by another 500 jobs when phase 3 is complete, bringing a total number of jobs to more than 1000.

Marking the completion of phase 2, CDC’s Head of Operations, Mr. Sadick Davids, expressed his excitement about this milestone, and emphasised the crucial role phase 3 will also play in creating employment opportunities. Phase 3 of the development is expected to commence in the first quarter of 2023.

“It’s gratifying to see the confidence business has on the Coega SEZ. Our responsibility is to ensure we provide an enabling environment for businesses to grow,” added Davids. Other businesses in Coega concur, as indicated below.

Furthermore, in terms of sustainable business practices, Coega Steels procured a Water Softening Plant to minimise the impact of the current water crisis in the Metro. The Water Softening Plant will allow Coega Steels to feed water continuously through their production processes in a closed loop system. For more information about Coega Steels, visit coegasteels.com.

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