The Select Committees on Trade and International Relations and Economic Business Development have undertaken to invite both the Department of Economic Development and the Department of Trade and Industry to brief the Committees on plans to revive the Highveld Industrial Park.
The Committees are on a week-long oversight visit to Mpumalanga to assess the implementation of the government’s economic policies in the province.
The Chairperson of the Select Committee on Trade and International Relations, Mr Eddie Makue, said: “It is important that the departments come to Cape Town and inform us what it is they will be doing about this park.”
The Committees received a briefing from the Chief Executive Officer of Evraz Highveld Steel, Mr Johan Burger, the company running the Highveld Industrial Park. Mr Burger said Evraz Highveld Steel was capitalised to the value of R150 million soon after it was bought by Evraz Group SA, but still the steel plant operations were forced to shut down.
“This is a unique processing plant in our country, funded by the Industrial Development Corporation, but it struggled to the point where it had to close the plant. Everybody is retrenched,” Mr Burger said.
“If one were to build this project again it would cost two Gautrain projects. In 2016, we were on the verge of liquidation and the assets being scrapped. So a decision was taken to turn the site into a business park,” he said.
He said the company was now working with various players, including ArcelorMittal, and has a number of suppliers using its steel, such as Kusile and some small mines. The plant also hosts workshops to train people in various skills and crafts. He alerted the delegation to challenges relating to funding and disagreements in the community regarding who should be employed at the refurbished industrial park.
“With a bit of income we were able to keep the plant going and refurbish. It now generates income for the community. We live in the community and could not operate without them. We are interacting with the community, but it is difficult to engage them as there are different wards and political formations,” Mr Burger said.
The company plans to hold a consultative session with the community on the selection process for the 40 people soon to received training at the park in plumbing, carpentry and welding, among other skills.
The Committee will today visit the Ekandustria Industrial Park and the Moloto Corridor.
Sibongile Maputi
29 March 2017
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