The world's largest steel producer ArcelorMittal has announced that its subsidiary ArcelorMittal South Africa has opened a rod mill in Maputo, Mozambique.
The recently refurbished rod mill, acquired by ArcelorMittal South Africa in 2006 for $11.4 million, is in line with company's strategy to boost its position in sub-Saharan Africa and to ensure a presence in the fast expanding Mozambican economy.
As raw material the mill will use steel billets imported from South Africa and Ukraine and will have an annual round bar production capacity of 35,000 mt, which is going to be sold primarily in Mozambique.
As ArcelorMittal South Africa's CEO Nonkululeko Nyembezi-Heita stated, the company, as a part of the mill purchasing agreement, is to assist the Mozambican government in developing a strong domestic steel industry by creating employment opportunities in both the upstream and downstream sectors of Mozambique's steel industry, and by developing and stimulating the market among local suppliers and the construction sector.