A R1.1 billion investment by MAN Ferrostaal in the Coega industrial development zone (IDZ) in the Eastern Cape, which is expected to create 5 000 jobs, is set to go after the provincial government gave it the green light.

The IDZ also resolved another troubling issue by finding a new tenant for a R200 million facility it built for Sander Textiles, which then reneged on the deal.

The provincial department of economic affairs, environment and tourism has given MAN Ferrostaal the green light following the completion of its environmental impact assessment (EIA).

Approval was given on the basis that the mill was strategically located to service the automotive sector in the region and because the Coega IDZ had already completed an EIA.

Other projects are also shaping up.

The spokesperson of Coega Development Corporation, Vuyelwa Qinga-Vika, said a shrimp farming project, which would be labour intensive, was also on the cards. The decision on its EIA is expected soon.

Dynamic Commodities, which already has an operation in Port Elizabeth, will take up the facility on a 15-year lease.

Dynamic Commodities, which produces cut frozen fruit for export to the US and Japan, declined to elaborate on its plans.

Adrian Vardy, the chief executive of Dynamic Commodities, said details would be forthcoming once all stakeholders had been informed.

Construction of MAN Ferrostaal's mill will begin early next year.