WEDNESDAY, 2.00PM
FOUNDATIONS are being laid for the first major downstream development of the R7-billion Saldanha Steel project.
Duferco Steel Processing, a joint venture between the Industrial Development Corporation (IDC) and Swiss-based steel firm Duferco, will provide cold-rolled and galvanised steel products early in 1999. Total production is aimed at the export market, with the venture expected to bring in R200-million in foreign exchange earnings annually.
The R850-million plant will have an annual production of 610 000 tons of steel a year, representing about half of Saldanha Steel’s output of 1,25-million tons, and adding value of 35%.
Duferco’s international chairman Bruno Bolfo said he plant bears testimoyy to Duferco’s confidence in South Africa and the IDC. “We anticipate that the plant will create permanent employment opportunites for 220 people … with another 700 indirect jobs … representing a significant spillover effect into the economy of the region,” said Bolfo.
BUSINESS BRIEFS
SECUNDA COLLIERIES STRIKE DRAGS ON
A WAGE strike by 6 000 members of the Chemical Workers’ Industrial Union at Sasol’s Secunda Collieries continued on Tuesday, although agreement has been reached on several issues, including maternity leave, allowances and working hours, the company said. A union spokesman said the strike is crippling Sasol’s coal export operations at Richards Bay. The union is demanding an 11% to 12% wage increase against Sasol’s offer of 10,5%.
BANK TAPS EURORAND MARKET
THE European Bank for Reconstruction and Redevelopment (EBRD) returned to the eurorand bond market on Tuesday with a zero coupon, 30-year, R3-billion issue, said lead manager Hambros Bank. The EBRD is an Aaa/AAA-rated borrower, and was among the first to tap this market, in September 1995.
SATELLITE STATION STARTED
TELKOM has started constructing a $30-million satellite station at Hartebeeshoek, west of Pretoria, that will bring telecommunications within reach of all of Africa. Earlier, Telkom signed a deal with ICO Global Communications to build and operate the station as part of an ICO global satellite communications network.
SANLAM INVESTS IN RDP
THE Sanlam Development Fund has invested R750-million in RDP-related projects since its launch seven months ago, according to fund manager Nick Christodoulou. He says projects worth R1,6-billion have been turned down. The investments have shown a return of 30% since the fund was launched.