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R1,1bn chemicals investment for Coega
Posted on: Thursday, 10 November 2005. Article source: Business Day
The Coega Industrial Development Zone — which is battling to attract quality tenants — yesterday netted its second large catch to date, a R1,1bn chlorine-refinery project.
The tenant, South African-based Straits Chemicals, would also build a desalination plant in the industrial development zone, the Coega Development Corporation (CDC) said.
The planned project is the second-largest investment in the multibillion rand Coega project after German company Ferrostaal’s announcement last week that it would invest R1,6bn in a stainless steel precision strip mill.
Earlier this year, a Belgian textile company, Sander International Textiles, announced a R200m high-end niche textiles investment.
Bouyed by the three recent sign-ups, CDC chairman Moss Ngoasheng said his company’s strategy to attract investors was beginning to pay off.
The international shareholders in Straits have indicated that they would raise their own money for the project. It is, however, not clear who will fund the local shareholder’s contribution.
Attempts to contact one of the local directors, former cricketer Clive Rice, last night were unsuccessful.
More than 600 jobs would be created during the refinery’s construction phase. At full production, the project would create 250 permanent jobs, the CDC said.
Ngoasheng said the investment was in line with government’s draft chemicals sector development strategy, which was released for public comment last week. The strategy was developed to increase the competitiveness, exports and investment in the local chemicals industry.
One of Straits’ directors, Eric Lim, said yesterday construction would begin after completion of environmental impact assessments. Lim is also executive director of Singapore-based chemical group Chemical Industries Far East, which manufactures and sells chlorine, caustic soda and hydrochloric acid.
The CDC said there were also plans for an ethylene dichloride plant which would be budgeted for separately.
Although he refused to give details, Lim said there were black economic empowerment partners for the project.
The plant would have the capacity to produce a minimum of 200 tons of chlorine a day for local and international markets.
The tenant, South African-based Straits Chemicals, would also build a desalination plant in the industrial development zone, the Coega Development Corporation (CDC) said.
The planned project is the second-largest investment in the multibillion rand Coega project after German company Ferrostaal’s announcement last week that it would invest R1,6bn in a stainless steel precision strip mill.
Earlier this year, a Belgian textile company, Sander International Textiles, announced a R200m high-end niche textiles investment.
Bouyed by the three recent sign-ups, CDC chairman Moss Ngoasheng said his company’s strategy to attract investors was beginning to pay off.
The international shareholders in Straits have indicated that they would raise their own money for the project. It is, however, not clear who will fund the local shareholder’s contribution.
Attempts to contact one of the local directors, former cricketer Clive Rice, last night were unsuccessful.
More than 600 jobs would be created during the refinery’s construction phase. At full production, the project would create 250 permanent jobs, the CDC said.
Ngoasheng said the investment was in line with government’s draft chemicals sector development strategy, which was released for public comment last week. The strategy was developed to increase the competitiveness, exports and investment in the local chemicals industry.
One of Straits’ directors, Eric Lim, said yesterday construction would begin after completion of environmental impact assessments. Lim is also executive director of Singapore-based chemical group Chemical Industries Far East, which manufactures and sells chlorine, caustic soda and hydrochloric acid.
The CDC said there were also plans for an ethylene dichloride plant which would be budgeted for separately.
Although he refused to give details, Lim said there were black economic empowerment partners for the project.
The plant would have the capacity to produce a minimum of 200 tons of chlorine a day for local and international markets.
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