Ferrostaal to build two plants in South Africa
Germany's Ferrostaal will build a
stainless steel precision strip mill at Coega and an oil rig
manufacturing plant at Saldanha Bay, both in South
Africa.
The projects are part of the company's obligations under a defense program: Ferrostaal will build the plants and South
Africa will by arms from
Germany.
Ferrostaal will invest €80 million ($96 million) for the first phase of the
stainless steel precision strip mill and €120 million ($144 million) for the second phase.
Furthermore, the company will spend $30 million to build an oil rig
manufacturing plant.
The steel required for the rigs will be provided from Mittal Steel's Vanderbijlpark plant. Mittal Steel may need to increase its
production capacity there.
Both projects are expected to get under way in March 2006.