Italian plantmaker Danieli has announced that the steelworks of the Angola-based private sector firm Aceria de Angola (AdA) located in Barra do Dande have started operation. Being the main contractor of the project, Danieli constructed phases 1 and 2 of a new 500,000 mt per year melt shop and rebar rolling mill. Construction activities on the new plant started at the beginning of 2013 and were completed in December 2015.
The aim of the project is to reduce steel imports from neighboring countries. Rebar output will account of more than 60 percent, wire rod close to 30 percent and wire mesh 10 percent, with an overall output target of 500,000 mt annually. Capital expenditure at the greenfield project amounted to $300 million, half raised through equity, half through five-year bank loans. Aceria de Angola expects that local steel demand will expand as Angola’s population is expected to grow to 30 million by 2030, from just over 24 million in 2014, creating new housing and construction needs.