Business News of 2013-12-02

US$40m grinding media plant in Tema

South African steel product manufacturer Scaw Metals Group, in collaboration with Jospong Group and Guma Group, will construct a US$40million grinding media plant (grinding media comprise the materials used in producing industrial abrasives, usually used in engineering processes) in Tema to produce high chrome and forged grinding media.

The plant, with an annual capacity of 50,000 metric tonnes, will become operational within 18 months and is expected to increase the Scaw Metal Group’s grinding media capacity on the Africa continent.

The Chief Executive Officer of Scaw Metals Group, Markus Hannemann, said Ghana’s government has made a great push for the local manufacturing industry to stimulate economic growth and job-creation.

He said the plant in Ghana will offer significant job opportunities in the local community.

“The Scaw Metals Group already has a presence in Ghana. The company’s Ghanaian operation was registered in 2011 as a regional sales office to service the West African region. With an office in Tema, Scaw Ghana functions as a local point of contact for all the products manufactured in South Africa by Scaw Metals Group that may be in demand in the region.

“From our experience in Ghana so far, we are certain that we will be able to fully utilise the vast potential in the region. The skills development we will be providing for 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,” he said.

According to the Group Chairman of Guma Group, Robert Gumede, the company’s investment showcases the value that partnerships between the private and public sector can bring to infrastructure development in Africa.

He said the 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 Chairman of Jospong Group, Joseph Siaw Agyepong, said the partnership shows that when Africans are given the opportunity and the needed environment is created, they can handle their own businesses.

Scaw Metals Group is a leading producer of forged grinding media in Africa. Demand for forged grinding media comes predominantly from the gold and copper industries.

Guma Group is a pan-African, black-owned multi-disciplinary investment company with operations globally and across the African continent. It employs over 12,000 staff and focuses on power generation, ICT infrastructure development, tourism, property real-estate, and shopping centre