A steel smelter plant in the Thaba Nchu industrial area is envisaged to create much-needed employment for approximately 620 people once fully operational. Known as the Rui Star Iron-Steel Plant, it already has employed 120 locals for completion of phase one.
According to Thabo Meeko, MEC for the Department Economic, Small Business Development, Tourism and Environmental Affairs (Destea), the plant will stimulate the economy. This followed an oversight visit to the plant on Wednesday (24/05), to assess work progress made.
Meeko was accompanied by the executive management of the department. He has expressed confidence that the project will create prospects of growth and permanent employment to reduct the high employment rate in the Free State.
“The project is at the final stage and is envisaged to commence operating in the first week of June. The department has invested a whooping R300 million into the project,” said Meeko. He said the financial injection was in line with the department’s ambitious mission to drive industrialisation.
The company initially operated the plant in the Botshabelo Industrial Park. However, due to electricity capacity in the area being less than what is required for production, it then relocated to the Thaba Nchu industrial area.
The company sources scrap metal materials across South Africa and process these materials into steel and iron.
“This is one of the key results emanating from continuous engagements with different stakeholders, investors, and potential funders. We are on a mission to attract investors so that we buy new money into our economy and create jobs to reduce the high unemployment,” said Meeko. According to the Quarterly Labour Force Survey (QLFS), South Africa’s unemployment rate in the first quarter of 2023 was recorded at 32,9 %, placing it among the highest in the world. The Free State’s unemployment rate expanded to 39.7%.
Meeko is currently on road shows in local municipalities to identify projects to revive the economy and to create employment to reduce the province’s high unemployment rate.
