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The Coega Development Corporation has signed a lease agreement with leading cement producer AfriSam for the establishment of a cementitious milling and blending plant in the Coega Industrial Development Zone.
AfriSam says the plant will have a production capacity of 740 000 tons per annum and will supplement its existing supply of cement to the Eastern Cape market.
It says an estimated 400 jobs will be created during the construction phase, while the operational phase will create approximately 90 jobs.
An Environmental Impact Assessment is currently underway and pending approval construction of the plant will commence and come online in 2015.
"We are pleased about the conclusion of the agreement and are excited to have this new opportunity to establish an operational presence in the Eastern Cape, expanding our internal capacity," said Stephan Olivier, Chief Executive Officer of AfriSam South Africa.
"The new operation will benefit our customers in the Eastern Cape directly through increased guarantee of supply and shorter product lead times. The plant will also provide employment for sixty people, with an additional thirty employment opportunities created through service providers," Olivier said.
Ayanda Vilikazi of the Coega Industrial Development Zone, says the AfriSam project has a capital expenditure value of R634m and will see the Zone 5 metallurgical cluster being filled.
"The CDC's investment base is steadily increasing and every quarter it adds a few more credible investors to the Coega IDZ family," he said.
(Image: CDC CEO, Pepi Selinga and Afrisam chief executive Stephan Olivier)
