Not long ago, the Highveld Steel iron plant was a place of flames, fire, thunder and lightning. That was until it was placed into business rescue in April 2015.
However, a business strategy was set in motion to convert the steel complex into the Highveld Industrial Park and to see the park capitalise on its strategic location and key facilities. The current strategy includes the selling of strategic assets and the lease of workshops and other facilities on site and currently there are in excess of twenty tenants on site.
One of the key strategic assets for sale at the Highveld Industrial Park is Iron Plant 1, which Highveld is currently in the process of seeking potential purchasers for, according to a notice on the Evraz Highveld website and a news report in Engineering News. This asset offers investors a unique opportunity to acquire a versatile, state-of-the-art smelter plant capable of profitably producing a range of products including pig iron, ferro alloys and valuable slag by-products from fines.
The smelter plant boasts three modern open slag bath furnaces, as well as 10 pre-reduction or preheating kilns. There is significant flexibility in operation as it is possible to spilt the plant into different product streams. With an estimated ramp-up to full production in approximately 12 to16 weeks, the lead time to market is significantly reduced when compared to the construction of a similar sized smelter plant.
The Iron Plant is situated in the ideal location in the heartland of South Africa’s mining and power producing hub and is also linked to national roads and highways, including the N4. The industrial park also owns a private rail siding linked to the major rail networks.
Highveld Industrial Park’s infrastructure is perfectly designed to cater for the successful bidder of Iron Plant 1, as it includes a 350 MW mVA direct supply of electricity from Eskom and a direct supply of reasonably priced raw water supplied directly from the municipal dam through a dedicated pipeline, as well as water purification facilities to deliver potable water.
Energy and chemical group Sasol supply methane-rich gas, while gas producers African Oxygen and Air Liquide, with plants located on the premises, can supply industrial gas such as oxygen, nitrogen and argon.