The investment was believed likely to be worth just over R10 million and is a joint venture between Ferrostaal, German manufacturer Condomi, and an empowerment group involving the Women's Development Bank and Khula Industrial Investments. The factory will initially process and test some 100 million condoms a year from Eastern Germany. A spokesman also reacted to speculation over Ferrostaal no longer being able to invest in a R2 billion stainless steel mill in the country, and locating it either at the Coega industrial development zone (IDZ), or elsewhere. This was premature and without substance, said the Ferrostaal spokesman. Ferrostaal reiterated its commitment to investing in the country in terms of offset projects linked to the government's arms deal, and said that some of these projects were already beginning to be rolled out. The statement was in response to a string of speculative media reports this week about Ferrostaal's likely future involvement in the Coega IDZ project in the light of Columbus Steel's acquisition by Spanish stainless steel group Acerinox. Ferrostaal planned to build a cold-rolling steel mill either at Coega or in Middelburg, Mpumalanga, with Columbus as its likely local operating partner. However, following the acquisition of Columbus Steel, the Spanish company was quoted as claiming to be no longer interested in the venture with Ferrostaal. This was interpreted to mean that Ferrostaal might actually no longer be able to invest in the stainless steel cold-rolling plant at Coega or elsewhere. However, a spokesman for Ferrostaal said yesterday that neither Acerinox nor Columbus Steel had commented officially in this regard, and that it would be ''premature'' therefore for Ferrostaal to speculate on in its future investment plans with regards to the steel mill. The spokesman added that while, indeed, Acerinox's involvement with Columbus had changed the former South African company's position, this did not preclude further exploration of a partnership with them in the cold-rolling steel mill project. But as far as Ferrostaal's investment plans for South Africa were concerned, he said: ''Ferrostaal is sticking firmly to its commitments in terms of the off-set project. ''The company has identified certain projects some of which are being negotiated with the department of Trade and Industry." He added he could not divulge information on precise locations of any projects