ArcelorMittal to Produce Heavy Steel Plate for Wind Energy Projects in South Africa

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Another international company is joining the manufacturing supply chain of South Africa's renewable energy sector. The local division of major international steelmaker ArcelorMittal (NYSE:MT) (Luxembourg) plans to increase its profile in the wind power sector by expanding its production of heavy plates for wind towers.

The company has been supplying structural steel for wind towers and concrete-reinforcing bars for foundations in the past few years, and is now finalizing the upgrade of its South African plate mill to produce plates of up to 11 tonnes. The upgrade is planned for the fourth quarter of 2014, and production will begin in January 2015.

ArcelorMittal is hoping to supply all the tower manufacturing facilities in South Africa. The company is holding discussions with some of the major international wind-tower makers, including Nordex (XETRA:NORDEX.SE) (Hamburg, Germany), Siemens AG (NYSE:SI) (Munich, Germany) and Vestas (OTC:VWDRY) (Aarhus, Copenhagen), to supply steel for more windfarms in rounds two and three of the government's renewable energy initiative.

In round two, the company will supply 20 wind towers for Vestas turbines at the 60-megawatt (MW) Grassridge windfarm in the Eastern Cape province. This project required 3,000 tonnes of steel, with the local mill providing 2,200 tonnes. The balance of 800 tonnes will be provided by Gijon (Spain).

View Project Report - 300084821

Wind energy projects are a part of the South African government's Integrated Resource Plan, which targets a total of 3,725 MW of renewable energy by 2016 and 17,800 MW by 2030.

For related information, see July 3, 2014, article - U.S. OPIC, EX-Im Banks Keen to Fund Multi-Billion--Dollar Southern African Renewables.

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