Tata begins construction of Ferrochrome plant at Safrica

Kolkata, Aug 21 (UNI) Tata Steel KZN (Pty) Ltd today began construction of its Rs 670 million Ferrochrome plant at Richards Bay, South Africa, with a ground-breaking ceremony at Alton North Area, in the largest port city in Kwazulu-Natal.

A plaque to commemorate the occasion was unveiled by the South African Deputy President Phumzile Mlambo-Ngcuka.

Ferrochrome is used in the manufacture of stainless steel and the plant's output would be exported to Tata Steel existing customers, principally in Asia, Europe and the United States, said Tata Steel Managing Director B Muthuraman.

The plant will take about a year to complete and is schedule to be commissioned in the fourth quarter of 2007.

Mr Muthuraman said South Africa had been selected from an initial short list of eight countries. The final choice was between sites in South Africa and Australia, with South Africa winning because of factors including power cost, skilled technological base and manpower, developed infrastructure logistics arrangements and its strong financial institutions.

Tata Steel is considering doubling the size of the plant, from two furnaces to four, and a decision will be made after the first year of operation. If the phase II expansion is approved, it will result in additional investment of possibly Rs.400 million It will create some 1,000 jobs at the peak of construction and 130 permanent jobs once the plant is fully operational. The possible phase II expansion would add another 50 permanent jobs. Tata Steel estimates that, apart from the direct job creation, some 800 additional jobs may be created by contractors and suppliers.

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