The western province of Tete will soon have a steel factory, which will help drive the economic development of that part of the country, declared provincial governor Paulo Auade on Tuesday 20 September.
Addressing a meeting of the Tete Provincial Assembly, held in the town of Moatize, Governor Auade said the new factory, with an annual capacity to produce 500,000-tons of steel bars will be installed in the recently created Revuboé Industrial Free Zone, on the border between Moatize and Chiuta districts.
The factory will occupy an area of about 4,484-hectares, and production is scheduled to begin in January 2020.
The company Capitol Iron and Steel Lda. has promised to invest US$770-million in the factory.
Capitol is the local representative of the British-based Baobab Resources – the
Tete Iron and Steel Project is owned 87% by Baobab and 13% by the International Finance Corporation (IFC), the member of the World Bank group, which invests in the private sector in developing countries.
Baobab Resources commissioned a number of companies, such as the Metallurgical Corporation of China and ABB, to conduct a feasibility study for an operation to produce 500,000-tons of long steel products, which should be completed by the end of the month.
“One of the gains of setting up the Revuboé Industrial Free zone”, said Governor Auade, “is the implantation of a steel factory, and attracting around it a series of service industries”.
He believed that the steel plant would lead to other activities such as the production of cement, rolling stock, railway sleepers, reinforced concrete and metallic cables. Above all, the new industry would create new jobs.
The governor urged local businesses in Tete “to explore this window of opportunity that is opening with the Revuboé Industrial Free Zone, so as to establish partnerships with foreign capital, and maximise the resulting gains”.
Source: MacauHub/Agencia de Informacao de Moçambique
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