South Africa is set to get an overseas steel mill from Chinese Steel Producer Hebei Iron and Steel Group. This steel mill is expected to produce five metric tons of steel by 2019 with production beginning in 2015.
Although officials from Hebei Iron and Steel Group did not reveal the amount to go into construction of the steel mill, it has already signed a 51% venture deal with the Industrial Development Corporation of South Africa and China Africa Development Fund to construct the mill.
About 43% of the world’s steel comes from China, yet the country has not been doing well in its global presence strategy in the steel industry. The move by Hebei Iron and Steel Company to invest in an African country comes as the Chinese policy group are attempting to ease China’s restrictions on investment in steel in foreign countries.
The Secretary General of China Iron and Steel Association, Zhang Changfu, noted that country has to open to globalisation by allowing an increase in Chinese foreign steel mill companies.
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