GIPC confirms Scaw’s $40m investment

The Ghana Investment Promotion Centre (GIPC) has given approval for the construction of a new grinding media plant at Tema valued at $40 million.

The new plant, which seeks to significantly increase the company’s capacity on the African continent, will be constructed in partnership with a consortium comprising Guma, a South African player, as well as the Jospong Group of Companies, based in Ghana.

Mawuena Trebarh, Chief Executive of the Ghana Investment Promotion Centre (GIPC) and Robert Gumede, principal owner of SCAW, have both hailed the cooperation between Ghana and South Africa in recent times

The plant, with an annual capacity of 50,000 metric tons, would become operational by 2014 and will offer significant job opportunities in the local community.

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.

“We are delighted that we will be opening a plant in Ghana and this is outbound investment for a South African entity. The Ghanaian government has made a great push for the local construction industry to stimulate economic growth and provide job creation,” said Markus Hannemann, Chief Executive of the Scaw Metals Group.

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 offices in Tema, Scaw Ghana functions as a local point of contact for all of the Scaw Metals Group’s products manufactured in South Africa that may be in demand in the region.

“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,” said Hannemann.

The consortium, which holds 30 percent of the entity, will be given preference to supply products and services during construction and thereafter. “We are looking forward to the partnership with the Scaw Metals Group and supplying the region will grow the business further. We will also look for other steel beneficiation opportunities in Ghana,” noted Joseph Siaw Agyepong, Chairman, Jospong Group of companies.

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

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.