Investors sign up to bring industries to Richards Bay
Massive investments signed for Richards Bay
WITH a renewable energy plant, a paint factory and possibly a massive Chinese steel smelter in the pipeline, Richards Bay has once again become a honeypot worth multi billions to investors.
Despite Richards Bay Industrial Development Zone (RBIDZ) Board Member Mbali Ndlovu’s voiced fears of an April Fool’s jest, electricity producer Byromate (Pty) Limited and ProStar Export Paints on Wednesday signed lease and recognition agreements worth a combined R2.6-billion with the RBIDZ.
To sweeten the pot, the world’s third largest steel producer Hebei Iron and Steel, has shown interest in establishing a smelter worth 10-billion US dollars in Zululand.
The group is currently conducting a pre-feasibility study to build a world class facility on 3000 hectares of land to produce five million tons of steel per year.
Byromate, trading as Energuys, has committed to construct a 65 MW biomass electricity generation plant worth R2-billion in Alton.
Essentially, they will turn the northern KZN’s abundance of forestry by-products into clean, renewable energy.
‘We will convert half a million tons of forestry and agricultural waste per year into electricity,’ said Energuys Director Dion Wilman.
‘Tree branches, bark, leaves, paper, pulp and sugarcane waste – all valuable materials considered trash and burnt to the detriment of the environment – will instead pump electricity into the grid.
‘The plant will provide 24/7 power, 265 days a year.
‘We also expect it to bring in a further R15- to R20-billion into the region’s economy over the next 20 years of its operational life.’
The investment will create approximately 260 construction jobs and 70 permanent jobs.
Paint production
ProStar Export Paints will build a paint production facility on a two-hectare plot in RBIDZ’s Phase 1A industrial estate near the Richards Bay port – an investment initially worth R25-million.
Another factory worth R35-million will be added to the site in three years’ time.
‘While most people still only recognise the three major paint producers, we are proud to call ourselves a South African company,’ said ProStar Director Vergan Kumar.
‘We’re looking forward to growing into an environmentally friendly paint producer to provide hospitals and other clients with anti-bacterial products, specially since there have been reported cases of bacterial outbreaks.
‘Phase 1 of the development will produce 100 000 tons of paint a month, which will soon become R200 000 tons once the additional facility is completed during Phase 2.
‘Construction should start before the end of this year.’
RBIDZ CEO Pumi Motsoahae thanked the investors for choosing Richards Bay.
‘Today marks a reflection of opportunities yielding transformation of this region.
‘To date, we have signed R4.8-billion and further projects to the value of approximately R3.5-billion have been approved by the Board of Directors.
‘As RBIDZ, we are posed for more big investors raging into this area!’
