INVESTORS IN COEGA – NEWS ARTICLES
Coega welcomes R1,8bn Ferrostaal investment – 19 Oct 2005
The Coega Development Corporation has applauded German industrial group MAN Ferrostaal’s R1,8bn
investment in a stainless steel precision strip in the development zone….
International contractors who benefit from government arms procurement are required to spend about $4bn
in various investments that spur economic growth and create jobs. The companies have so far managed to
spend $1,5bn….
Coega lands a R 1, 1 billion investment - 25 Oct 2005
The Coega Development Corporation (CDC) welcomes the decision by Straits Chemicals to locate a R1, 1billion chlorine refinery project and desalination plant in the Coega Industrial Development Zone.
Coming in only days after the announcement of a R1, 6 billion Ferrostaal investment on a precision strip
mill at Coega and five months after a Belgian investor announced a R200-million high-end niche textiles
investment…
“Straits, SIRSA, Ferrostaal and all the other investors the CDC is in negotiations with…
The investment is expected to create a total number of 250 permanent jobs during the operational phase.
The construction phase will create about 600 employment opportunities….
Sander announces R200m investment at Coega - 7 Dec 2005
Sander announces R200m investment at Coega
One of the Coega Industrial Development Zone’s first investments appears to be on track, with Belgian
group Sander announcing a new empowerment partner in its textiles venture on Tuesday…
Coega zone management handed over keys to the factory to Sander on Tuesday. The factory, which is yet
to be equipped, will produce fire-retardant industrial textiles, mainly for export….
The factory would employ about 130 people and produce its first textile in February, he said…
Coega’s first tenant takes occupation - 7 Dec 2005
Sander International, a textiles manufacturer, has taken occupation as the first tenant in the multi-billionrand Coega project in Nelson Mandela bay.
This is an important milestone for the Industrial Development Zone.
The R200 million investment created by Sander’s tenancy will eventually create 500 jobs.
R3,6-billion seafood project for Coega 10 Apr 2006
A pilot project farming giant shrimps for export, which could lead to an investment of R3,6-billion over six
years and create close to 4,500 direct jobs as well as numerous downstream opportunities, is planned for the
Coega industrial development zone.
SeaArk Africa - a 50% joint venture between SeaArk Holdings Incorporated of the US and the Bosasa
Group of Companies of South Africa - has been formed with the main purpose of developing marine
aquaculture farming facilities in Africa and the Middle East. The company’s first development will be at
Coega. …
SeaArk Africa has signed a memorandum of understanding with the Coega Development Corporation, and
negotiations are under way for the project support agreement that will commit the company to invest at
Coega subject to a number of conditions. …
R85m expansion in Nelson Mandela metro - 12 May 2006
Cerebos Ltd, a local investor, has announced a R85-million expansion and relocation project in the Coega
Industrial Development Zone in the Eastern Cape’s Nelson Mandela metro. …
Construction work of the new plant was scheduled to start in July.
The investment was made possible through a strategic partnership with the Development Bank of Southern
Africa (DBSA) and Khumo Bathong Strategic Investments, a black economic empowerment partner, he
said.
Oracle, Coega to team up in new planning system - 16 May 2006
The Coega Development Corporation announced on Monday that global IT company Oracle would be its
partner for developing a R4,5-million enterprise resource planning system.
In addition to the development of software, Oracle will also train five unemployed graduates at its
university in Midrand to implement, manage and maintain ERP systems….
"The idea is to create an IT skills pool in the region that investors could draw from," Mawasha said. …
The value of the eight-month-long learnership is estimated at R1,6-million….
The implementation of the Oracle ERP system is under way through a strategic partnership with the CDC’s
Imbewu project, a consortium consisting of Deloitte, ICT Works and Nokusa Consulting.
Tank farm relocation sparks excitement - 29 May 2006
…Transnet agreed to relocate the tank farm and the manganese ore dump at the PE harbour to Coega and
open up that prime land for non-industrial development.
MBDA chief executive Pierre Voges said on Sunday that new facilities would have to be built at Coega
before the relocation took place. He said it would cost about R1,5-billion to build a new facility.
"At the latest by 2011, the facility will have relocated to Coega. We cannot afford an interruption of
service, and so a new facility will have to be built before the relocation. There are about five years in which
to build new facilities at Coega before decommissioning the PE facility," said Voges.
He said the MBDA’s master plan, which includes the waterfront development, had been approved by
Transnet….
State’s R162bn capital outlays promise to add 1,5% to GDP - 14 Jun 2006
The state’s ambitious R162bn capital investment programme to be undertaken by parastatals Transnet and
Eskom over the next five years would contribute about 1,5% annually to gross domestic product (GDP),
Public Enterprises Minister Alec Erwin told Parliament on Tuesday.
Coega harbour R2,5bn closer to completion - 5 Jul 2006
The deep-water harbour at Coega took a step closer to completion on Tuesday when Transnet announced a
R2,5-billion injection for infrastructure development.
Coega IDZ stainless steel project gets the go-ahead - 11 Aug 2006
The R1,1 billion stainless steel precision strip mill project in the Coega Industrial Development Zone (IDZ)
received its long awaited authorisation by the Eastern Cape economic affairs, environment and tourism
department this month. …
MAN Ferrostaal is the main partner in the consortium, which also includes Columbus Steel.
The construction of the strip mill will be executed in two phases and R500 million will be spent on each
phase. About 800 construction jobs will be created and there will be 200 permanent jobs for operational
staff. A further 4,000 jobs are expected to result from upstream and downstream industries in the country. ..
Russian Company Considers Ferro-alloy plant at Coega - 5 Sep 2006
A MAJOR Russian company and the Coega Development Corporation (CDC) will sign a Memorandum of
Understanding (MoU) in Cape Town tomorrow, a move which will come as an important step forward for
the Coega Project in realising its strategic objectives.
The Russian billionaire, Victor Vekselberg’s investment firm, Renova, is undertaking a feasibility study for
the development of a value chain comprising a mine and sinter plant in the Northern Cape; a ferro-alloy
smelter at Coega and the export of bulk manganese ore through the new Port of Ngqura adjacent to the
Coega Industrial Development Zone near Port Elizabeth. …
Smelter investment ’expected to attract FDI’ - 26 Oct 2006
The South African Government has invested over one billion rand in bulk infrastructure at the Coega
industrial development zone at Port Elizabeth, according to the Medium Term Budget Policy Statement
issued on Wednesday. …
"The aluminium smelter is expected to attract other foreign investment to the Eastern Cape and will
significantly contribute to employment creation and social equity with an estimated 6,000 people required
in the construction and 1,000 people in operations." …
"Transnet has recently announced a further 2.5 billion rand investment into the second phase of the
development of the new deepwater port. ..
In the bag! Alcan to sign deal next week - 16 Nov 2006
…Alcan announced it would sign the final papers for its R20-billion Coega aluminium smelter next week,
paving the way for the creation of thousands of jobs and changing the face of industry across the Eastern
and Southern Cape.
After almost 5 years of negotiations and amid great anticipation by the business community, the Canadian
company announced on Wednesday that the historic signing would take place in Port Elizabeth next Friday.
..
The smelter will create some 6, 000 jobs during the construction phase and 1,000 when it becomes
operational, in addition to a host of downstream opportunities. Construction is likely to start at the
beginning of 2008.
Alcan construction to start in 2008 - 27 Nov 2006
Global aluminium producer, Alcan says construction on its $2.7 billion (R19.5 billion) smelter at South
Africa’s Coega development zone will commence in 2008, and first production is expected before the end
of 2010. ..
Alcan plans to retain a 25-40 percent equity interest in the project, while 60% of the total investment
required will be through debt. …
The corporation plans to subscribe for a 15% equity interest in the project, provide co-financial advice as
well as assist with the black empowerment process on the project.
Alternative fuels project comes on board Coega - 1 Feb 2007
The Coega Industrial Development Zone (IDZ) said on Wednesday it had signed up its fourth investor with
a R70m investment in a biomass fuel project, bringing the Coega Development Corporation within reach of
its target - 10 key investments by the end of March.
While only four investments have been announced, another four have been signed but cannot be announced
because of confidentiality agreements.
The IDZ has been slow in taking off but last year finally bagged a key deal with Canadian aluminium
producer Alcan for the construction of an aluminium smelter in the zone.
Other significant foreign investments include a R1,1bn chlorine refinery investment by Straits Chemicals of
Singapore, a R1,6bn precision strip mill to be built by German group Ferrostaal, and an investment by Sea
Ark from the US for the export of shrimp. These projects are all undergoing environmental impact
assessments.
The latest investment is by Eastern Cape Biomass Fuel Pellets, a local producer of an environmentally
friendly alternative source of fuel to fire power stations. The business is a greenfields project.
Construction of the plant has begun and production will start in August, with the first product be exported
to Denmark in November; the company had secured an off-take agreement with Denmark, Eastern Cape
Biomass CE Willie Claassen said.
With a production capacity of 10,000 tons, Eastern Cape Biomass will be one of the largest of 285 similar
plants in the world with a total production capacity of 4-million tons annually.
The project’s potential to create a large number of jobs is arguably one of its biggest attractions, as the IDZ
was in part established to alleviate unemployment and poverty in one of SA?s poorest provinces.
A hundred jobs will be created during the construction phase and 60 people will be permanently employed
at the plant. The indirect employment creation runs into the thousands.
With feedstock derived from forest residue and alien vegetation in Eastern Cape and part of the southern
Cape, it was estimated 3,000 indirect jobs would be created, as raw material had to be harvested by hand,
Claassen said. A transport company that would move material between the sources of supply, the factory
and the harbour would employ a further 40 people.
The project was feasible at an exchange rate of R5,50/$, said Claassen. Revenue was estimated at R350m
over five years. Coega was chosen because of its proximity to areas from which raw material would be
sourced, and because a deep port was essential for the export of product.
The Industrial Development Corporation has taken up 10% equity in the project, while 30% has been
earmarked for an empowerment partner. A further 10% has been set aside for workers and the rural
communities that will provide the raw material.
Singapore firm to pour billions into SA - 24 Apr 2007
A Singapore company will invest nearly R6 billion in a chlorine manufacturing plant in Port Elizabeth, the
Coega Development Corporation (CDC) said on Monday.
CDC spokeswoman Vuyelwa Vika said the investment deal, signed between Straits Chemicals and CDC,
would bring the company to the Coega Industrial Development Zone (IDZ) and contribute to job creation
in the Eastern Cape.
"This project is expected to create 600 jobs during construction and once operational will employ about 250
people on a three-shift basis, excluding management positions," she said in statement.
Close to 600 jobs will be created during the construction phase. …
Desalination plant gets green light - 31 May 2007
A Unit of General Electric announced on Wednesday that it would design and construct a R1,5 billion
desalination plant in the Coega industrial development zone.
It will provide 70 000m² of fresh water a day for Nelson Mandela Bay. …
The new 600-ton-a-day refinery would be owned and operated by Straits Chemicals and would meet the
growing global demand for chlor-alkali and its derivatives.
It is expected that around 600 local jobs will be created during the construction phase. Once it is
operational more than 250 people will be employed.
Spoornet to invest R1,6bn in Coega line - 12 Jul 2007
Rail utility Spoornet would spend an extra R1,6 billion in the next four years to build new railway lines
linking Coega and Lephalale (Waterberg) coal mines to its national rail network….
The new investment is not part of the R35,8 billion Spoornet will use to buy new locomotives and wagons
and install signals systems in the next five years.
Spoornet finance executive Johan Bouwer said on Wednesday that the state-owned group would spend
R817 million on constructing a railway line connecting the port of Ngqura to the existing track in Port
Elizabeth.
Coega industrial zone gears up for business
29 Jul 2007
The Coega Industrial Development Zone, heralded by the government as one of the best examples of
progress in South Africa, has secured 11 investors since April last year.
The R2-billion phased development project ? which comprises 11500ha of land being developed for
industrial purposes to complement the deep-water port of Ngqura ? will be the first fully integrated
industrial zone in the Southern Hemisphere.
It will be dedicated to export-oriented manufacturing and projects in the business process outsourcing and
off-shoring sector, also known as the call centre industry….
?The bulk electrical supply infrastructure, main water supply network, a main trunk gravity sewer, more
than 28 000m of optic fibre and in excess of 15km of roads have seen a firm base in place for investors. …
The recent announcement by Canadian aluminium giant Alcan of a 100-million (R700-million)
engineering, procurement and construction management contract to the Murray & Roberts, Hatch and
SNC-Lavalin joint venture signalled a milestone in the development of the R20-billion Coega aluminium
smelter project.
Coming just eight months after Alcan signed project agreements with Eskom, the CDC, the Industrial
Development Corporation and the Department of Trade and Industry, this has solidified the surge in
business confidence in the area. …
Alcan has indicated that a second phase, which would ramp up production to 720 000 tons a year, is in
development.
Construction on the smelter project is expected to begin in 2008, with metal production anticipated around
2010. An estimated 30 000 employment opportunities are expected to arise from the project.
Under construction within the zone is German company Ferrostaal?s R1.1-billion stainless-steel precision
strip mill. …
A billion-rand ferro-manganese smelter complex is under construction in the IDZ, a development which
could help facilitate a speedy upgrade of the railway link between Coega and the Northern Cape, where the
manganese will be mined. …
Another investor in the IDZ is Straits Chemicals, which will invest a total of R5.8-billion in a chlorine
manufacturing and water desalination plant. foreign and domestic markets.
It is expected that this project will create 600 jobs during construction and, once operational, will employ
about 250 people, excluding management. Construction is expected to take between 18 and 24 months,
with official commissioning around 2009.
Dynamic Commodities has set up a fruit processing factory in the IDZ and has already begun supplying
frozen fruit sorbets to the US, Europe, Middle East and Far East markets.
Eastern Cape Biomass Fuel Pellets has invested R70-million in the zone and will soon begin production.
Meanwhile, Cerebos is expanding and relocating its operations to the IDZ in a R85-million project, where
the plant will use new technology to produce pure vacuum-dried salt, a first for sub-Saharan Africa.
At least 100 jobs will be created during construction in addition to the retention of the 140 jobs in the
current operations. More jobs are expected to be created as the company increases its volumes to meet
rising local and international demand for the salt.
Other projects planned for the IDZ include a 1500-seat contact centre for business process outsourcing.
Construction of the call centre, which will be the biggest in the country, is under way with a contract for the
first operator ? one of the major South African banks ? already signed.
The project is expected to be completed during 2008.
Facilities for a paving bricks firm, a container depot, a cold storage facility and a warehouse for a logistics
company are close to completion.
And in order to meet the demand for industrial space in Nelson Mandela Bay, the CDC has begun
construction of speculative warehousing in the IDZ.
The first three warehouses are under construction and expected to be completed before the end of the year.
There is also the option of contracting private sector property development companies or consortiums to
develop land for a specific investor or develop land speculatively for investors who are looking to move in
to the Coega IDZ.
The CDC will become the first company to establish its headquarters in the zone when it occupies its new
headquarters in December this year.
Construction of the R115-million five-storey office building in zone 1 is on schedule and the 9500m²
building will offer views of the Ngqura port and the sea.
Logistics Park receives R32m cash injection - 21 Jun 2007
The Nelson Mandela Bay Logistics Park has received a multi-million-rand boost from two government
departments to develop additional road infrastructure and a central hub shared facility.
The departments of trade and industry (DTI) and economic development and environmental affairs will
develop the new infrastructure, set to cost R32-million. …
"If finally integrated into Coega, the logistics park will be able to provide its customers with similar
advantages obtained from being in an industrial development zone," he said. …
About 139 people had been employed in new jobs, with 86 of them from previously disadvantaged groups
and 15 women.
It is envisaged that the park will have about 300 new tenants, 250 from previously disadvantaged groups
and 50 of them women.
Rio Tinto ‘views SA as prospect’ - 11 Sep 2007
Global resources group Rio Tinto saw additional opportunities for exploration in SA and was continuing to
invest in the country, CE Tom Albanese said at the weekend. …
It was also investigating the engineering and commercial viability of its potential coal project at Chapudi in
Limpopo and, when it concluded its deal to acquire aluminium producer Alcan, it said it would also have
the Coega smelter project in SA….
Coega anchor project still on track - 19 Sep 2007
Rio Tinto’s takeover bid for Canadian aluminium giant Alcan will not throw a spanner in the works for
Coega Industrial Development Zone’s R20billion aluminium smelter anchor project. …
Rio Tinto, the world’s third largest mining group, has made a $38.1 billion (more than R150 billion)
takeover bid for Alcan, which is currently being reviewed by competition authorities in all the countries
where the resource beneficiation giant operates. …
Coega Aluminium’s head office in Johannesburg will be moved to Port Elizabeth when the construction
phase starts and will have 200 employees.
Coega power plant fast-tracked - 28 Sep 2007
AltX-listed independent power producer the ISPA Group on Friday said it intends to bring its 1,600MW
combined cycle gas turbine power plant in Coega on stream as fast as possible "to meet the desperate need
for power in South Africa".
The UK-based company, which has operations at Newcastle and Merebank in KwaZulu-Natal, and
Swaziland, is expected to spend more than R2 billion on the plant with the first phase of 500MW costing
some US$150 million, or R1 billion….
Massive oil refinery planned for Coega
IN the biggest single industrial development in the history of the Eastern Cape, R39-billion is being lined
up to invest in building a massive oil refinery at Coega which will provide more than 5 000 jobs during
its construction phase and 1 000 permanent posts when operational, PetroSA announced yesterday.
The government-owned oil company‘s chief executive, Sipho Mkhize, said the oil refinery would have a
production capacity of 200 000 barrels a day and was expected to be commissioned in 2014 or 2015….
“It is estimated that the project will generate about 1 000 direct jobs during operations and 5 000 to
15 000 during construction,” said Mkhize, although adding that a final decision would be made only in
2010 or 2011.
• The CDC reported recently that the IDZ had created 19 940 jobs since it began, with 93,2% of those
filled by historically disadvantaged individuals. – Additional reporting by I-Net Bridge, Sapa, Reuters
and West Cape News .
Public hearing to be held on Coega gas turbine power station 30 Oct 2007
AES Khanya Port Elizabeth yesterday advertised their licence application for the construction of a gas
turbine peak power station to be built at Coega…
Pickering said work on the two diesel-powered open cycle gas turbines would begin in January, and it
was expected to reach commercial operation by late 2009.
He said that as a peaking power station, the Coega station would only run “in times of peak amounts of
electricity use” and would supply Eskom with extra capacity…
Around 500 jobs will be created during the construction phase of the project, but because the actual
operations of the plant were “highly automated”, would only create between six and eight jobs once in the
operational phase….
Shopping centre in pipeline first for Coega IDZ
IN an indication of how quickly the Coega industrial development zone is growing, building of its first
shopping centre is set to begin early next year…
The CDC has meanwhile advertised the tender for a factory at the Mandela Bay Supplier Park, to be
purpose-built for a specific investor who had already signed an agreement with the CDC.
He said the 30 000m² facility would consist of two components – a civil contract which would last around
two and a half months and the commercial development or top structure. The project would provide 60
construction jobs, he said….
Around 200 construction jobs would be created in the building of the upmarket facility, Mtimka said.
However he could not give numbers of jobs that would be created once the retail centre was operational.
He said construction would commence in January and was expected to be completed within eight months.