Minister of Economic Development, Mr Ebrahim Patel, will officially open the Cape Town Iron and Steel Works (CISCO) Plant in Cape Town.
Established originally in 1967, the factory was closed in 2010 and put on care and maintenance by its previous owner, Murray & Roberts, with a loss of some 360 jobs. The re-establishment of the factory is expected to return substantially all of these jobs in the coming years.
DHT Holding, the new Turkish owners of CISCO have invested R550 million since acquiring the company in 2012 to expand and upgrade the steel plant which produces steel from scrap using electric arc furnaces. The investment represents one of the largest investments by a Turkish firm in South Africa.
CISCO’s products, which are used typically in the manufacturing and constructions industries, are sold domestically within South Africa as well as exported to the rest of Southern Africa and other international regions. At full production, CISCO expects to source 500 000 tons per year of scrap metal and limiting scrap export plays a key role in ensuring that businesses such as CISCO are sustainable.
Local foundries and steel mini-mills has been under pressure for a number of years due to unavailability of scrap metal, a vital feedstock, due to a surge in export of scrap metal.
The reopening of the CISCO factory follows the introduction of a trade directive issued by the Minister of Economic Development that provides local steel mills with greater access to scrap metal, through a Price Preference System that favours local industry. This also supports jobs, the national infrastructure Programme and South Africa’s climate change commitments.
The event will take place as follows:
Date: 30 May 2018
Time: 14h00
Venue: CISCO Steel Plant at 42 Fabriek Street, Kuils River.
For more information contact:
Molefe Pule
Cell: 082 523 6775
E-mail: mipule@economic.gov.za
Phumzile Kotane
Cell: 071 462 8246
E-mail PKotane@economic.gov.za
