A METALS cluster is taking shape in the Coega Industrial Development Zone outside Port Elizabeth. The most advanced plans are for a R20-billion aluminium smelter by French company Pechiney, which has begun its public environmental impact assessment process. If it is given the go-ahead, the smelter will occupy 80 hectares. Coega, which is one of two final investment sites being considered by Pechiney, is the preferred destination, according to Eastern Cape Economic Affairs, Environment and Tourism MEC Enoch Godongwana. There are three major process components in the plant that will be about 1km in length. The raw materials will be transported by ship to dedicated facilities within the deep-water port of Ngqura. Pechiney is reported to be planning to confirm its preferred site this year and begin construction next year. The first metal will be produced early in 2005, and full capacity is expected to be reached at the end of that year or eight months after production begins. The period from the start of construction to operation at full capacity is expected to be 34 months. Meanwhile, plans to build two stainless steel plants costing R1,8-billion at Coega have been confirmed by the department of trade and industry. A third steel plant costing R2,5-billion is in the pipeline. The department said it had negotiated the investments - the first to be formally announced for the Coega Industrial Development Zone (IDZ) - as part of the counter-trade flowing from the arms deal. The plants will be constructed by Ferrostaal as part of the counter-trade offered by the German submarine consortium. In a briefing document the department said studies were in progress for the establishment of a R1-billion ultra-thin precision stainless steel strip facility to produce steel for products such as razor blades and automotive parts. The plant will employ about 200 people. The briefing document states that the second investment of R800-million will employ 250 people producing refrigerator stainless steel containers for use in transporting perishables. It added that another R2,5-billion project to manufacture special steel for export was also under negotiation between the department and Ferrostaal which might also be sited at Coega. Meanwhile, both the Coega Development Corporation and Godongwana have warned that it would, in the words of Godongwana “be premature to celebrate until they have made a final decision”.