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Work on Lamergyre’s steel alloy plant to commence in 2021

Wednesday, 28 Aug 2019
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The construction of Lamergyre’s steel alloy plant in South Africa is set to begin in 2021. The proposed greenfield plant will be established in Section 11 of the Coega Special Economic Zone (SEZ) in Port Elizabeth and will have a capacity to produce about 6.5 million tpa of stainless and alloy steels.

The project feasibility studies worth USD 120 million will be completed in 2020. Following the completion of the studies, construction works will begin in 2021 with all three phases of the project scheduled to be completed between 2024 and 2026.

Once complete, Phase-I will produce 2.5 million tpa stainless steel with about 1.5 million tpa alloy steel, while Phase-II will focus on increasing the steel output to 4.5 million tpa. Phase-III is expected to increase the capacity further to five million tpa.

Lamergyre estimates full operations by 2026 and full capacity production in 2027. Once full operations start it will own the source of its raw materials by partnering with local mining houses while also working with engineering experts to improve productivity and fund new technology to enhance productivity and cut down on costs.

Lamergyre has also signed a cooperation agreement with Direct Nickel (DNI) for development of a processing technology which will allow the stainless steel plant to access nickel in adequate quantities for its stainless steel production. Furthermore, the project is expected to create sustainable jobs in both the steel industry and the mining sector.

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