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ArcelorMittal South Africa Restarts Upgraded Rod Mill in Mozambique
05/28/2008 - ArcelorMittal South Africa restarts its recently refurbished rod mill in Mozambique, one of two mills the company acquired from the Mozambican government in 2006 for US$11.4 million.
ArcelorMittal South Africa has opened its recently refurbished rod mill in Mozambique. The upgrade was part of the company’s strategy to grow its sub-Saharan Africa footprint and to ensure a presence in the rapidly expanding Mozambican economy.
The refurbished mill is one of two mills ArcelorMittal South Africa acquired from the Mozambican government in 2006 for US$11.4 million.
The refurbished mill is one of two mills ArcelorMittal South Africa acquired from the Mozambican government in 2006 for US$11.4 million.
“We are delighted at finally reaching this milestone. We identified Mozambique as an important first step in ArcelorMittal South Africa’s strategy to expand its footprint into the rest of Africa,” said Nonkululeko Nyembezi-Heita, CEO of ArcelorMittal South Africa.
“Growth in the Mozambican economy accelerated tremendously over the past few years and we believe it is important that we gain a foothold in this fast expanding economy,” continued Nyembezi-Heita. “This mill will enable us to supply the local Mozambican steel sector, and thereby help stimulate domestic economic growth and further the development of the steel industry in Mozambique.”
The new rod mill, based in Maputo, will process steel billets imported from South Africa and the Ukraine. The billets, available in lengths of 3, 6 and 12 meters and measuring 100 mm x 100 mm2 will be delivered to the plant by road.
At the plant, the billets will be offloaded with an overhead crane and stored. Three-meter billets will be heated to 1200°C using compressed natural gas and air. Heated billets will be removed from the furnace with a peel bar then rolled as required for the final product. Bundled bars are removed by an overhead crane, weighed, stacked and dispatched to clients using road transport.
The upgraded facility has a staff complement of 89, including three South African expatriates. It will produce 35,000 tonnes per annum of 8-, 10-, and 12-mm round bar. These steel products will be sold primarily in Mozambique.
“ArcelorMittal South Africa is committed to assisting the Mozambican government to develop a strong local steel industry as part of the mill purchasing agreement,” commented Nyembezi-Heita. “The refurbishment and opening of this mill will create employment opportunities in both the upstream and downstream sectors of Mozambique’s steel industry, and also develop and stimulate the market among local suppliers and the construction sector.”
“ArcelorMittal South Africa will invest in the local communities through a number of corporate social initiatives,” continued Nyembezi-Heita. “ArcelorMittal has a strong track record of corporate social responsibility; we will determine which areas to prioritize in consultation with local communities.”
“I would like to thank the government of Mozambique, especially the Minister of Commerce and Industry, for ensuring the successful conclusion of the deal. Our interactions were conducted in the most professional manner and it has been a joy to work with the team from the Mozambique government,” concluded Nyembezi-Heita. “We look forward to continuing a successful partnership.”
