Ghana will soon benefit from the construction of a new grinding media plant in Tema, by South African steel products manufacturer, Scaw Metals Group. The plant, with an annual capacity of 50,000 metric tons, would become operational soon, and will offer a number of job opportunities in the local community.
The move valued at more than $40m USD is done in partnership with a consortium comprising Guma, a South African player as well as the Jospong Group of Companies, based in Ghana.
The Scaw Metals Group is the largest producer of cast high chrome grinding media in the southern hemisphere and is the leading producer and supplier of high chrome and forged grinding balls primarily to the African platinum, copper and gold mining industries.
Chief Executive of the Scaw Metals Group Markus Hannemann expressed delight at the opening of a plant in Ghana adding that it is an outbound investment for a South African entity.
He commended the Ghanaian government for pushing for the local construction industry to stimulate economic growth and provide job creation.
“From our experience in Ghana thus far, we are certain that we will be able to fully utilize the vast potential in the region. The skills development we will be providing for the employees of the plant will make sure that our plant will have world-class standards and have a significant knock-on effect in the local community,” says Hannemann.
The consortium which holds 30 percent of the entity will be given first preference to supply products and services during construction and thereafter.
The Chairman, Jospong Group of companies Dr. Joseph Siaw Agyepong mentioned that the partnership will seeks to supply the region and grow the business further.
“We will also look for other steel beneficiation opportunities in Ghana”, says, Dr. Agyepong.
Robert Gumede, Chairman of the Guma Group said "our investment showcases the value that partnerships between the private and public sector can bring to infrastructure development in Africa".
"This plant serves as a catalyst for the further enhancement of business to business relationships which is much needed for job creation and trade in the region".
The consortium will bring additional investment to Ghana by increasing the steel product range, through a company which will produce other steel related products including Rolled Products – long steel products, reinforcing bars, low and high-carbon wired rods, reinforcing coil, etc.
Demand for forged grinding media comes predominantly from the gold and copper industries. The forged plant operates three production lines and sources input bar stock directly from Scaw Rolled Products.