The remaining assets of Evraz Highveld Steel & Vanadium, once the second-largest SA steel producer before it went into business rescue four years ago after years of losses, will be acquired by Highveld Robusteel in a $105m (R1.65bn) deal that is set to boost economic activity in Witbank, Mpumalanga.
The $105m is made up of the asset acquisition, as well as the restart and upgrade of the plant, Robusteel said in a statement on Monday. It is a special purpose vehicle jointly held by black-owned Bonheur Ventures and Amplico Resource Management.
These assets, when restarted, will produce a range of heavy steel products, which are commonly used in manufacturing, construction and infrastructure development.
The transaction, which is set to create at least 900 jobs and result in the upskilling of local labour, will be funded from local and international sources, led by investment holding company Amplico.
“This transaction is an important step towards the re-industrialisation of the SA economy and an opportunity for funders, local and international, and stakeholders alike to get behind a potential global and competitive steel and manufacturing offering with a strong market outlook,” said Bonheur and Robusteel CEO Selaelo Ramusi in a statement on Monday.
Faced with rising costs, higher steel imports and a lack of major infrastructure projects at home, Evraz succumbed to pressure, leaving ArcelorMittal SA as the largest steel producer in SA.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.