/ 8 April 2008

Coega reels in major Indian investors

Several major companies in India looking to expand their global footprint have shown ”serious interest” in investing at Coega, the Coega Development Corporation (CDC) said on Tuesday.

The CDC said it had recently met 22 companies in Thailand and India to discuss investment in the Coega Industrial Development Zone (IDZ). Five Indian companies had shown exceptional interest in setting up in the IDZ.

”These companies are involved in the metals, chemicals and automotive sectors and are involved in producing duct lines, with applications in the telecommunications industry, auto-parts production and property development,” the CDC said.

”The other two possible investors are a steel and foundry mill and an iron-ore pellet and ferromanganese plant.”

CDC spokesperson Ongama Mtimka said the corporation is expecting visits by senior delegations from four of the companies by the end of the month.

”We’ll then engage further on how the CDC can assist them in managing the process of locating to the IDZ,” he said.

He said the CDC was not dissuaded by Eskom’s plans to hold back on power to new developments in the light of the energy crisis.

”Eskom has communicated that there can be no new development until 2012. The CDC’s investment projects are expected to come after 2012, when the power challenge has been addressed,” said Mtimka.

The Coega IDZ is near Port Elizabeth. — Sapa