ArcelorMittal South Africa is supplying its client, China’s Sinohydro Corporation, with reinforcing steel from its Newcastle plant for a number of hydroelectric projects across Zambia. More than 120,000 tonnes of rebar will be shipped to Zambia over the next five to seven years.
ArcelorMittal is currently supplying products to the Kariba North Bank situated at the Kariba Dam, the Ithetzi Thetzi Dam, as well as transmission tower base structures from Kariba to the distribution grid. The process of supplying steel to these projects included setting up transport solutions to the project sites in Zambia and managing the unique credit risks that exist. Gert Dercksen, ArcelorMittal South Africa sales manager, exports, explains, “The supply of the correct sizes and quality of steel, at the right time to prevent any delays, is critical to the success of the project.”
ArcelorMittal South Africa’s involvement in the hydroelectric projects in Zambia was established initially through a market research project in mid-2010. As a land-locked country with relative ease of access by road from South Africa compared to other routes, Zambia is an ideal location for ArcelorMittal South Africa to expand its product offering into the country.
ArcelorMittal’s long-term strategy is to supply steel for future hydro-electricity projects at Kafue Gorge in Zambia, Kariba South Bank in Zimbabwe and Kabompo in the North West of Zambia, starting in 2014. The company also plans to expand its presence into other African overland countries including Botswana, Malawi, Mozambique and Namibia.