The Coega Development Corporation has announced significant progress achieved on the Orion Engineered Carbons (OEC) Oil Tank Project.
OEC is a leading worldwide supplier of carbon black, which is a material with many industrial applications, including the production of tyres, inks, dyes, and paints, amongst others.
It has been a year since the announcement of OEC’s investment in the Coega Special Economic Zone (SEZ), with the expected completion of the heavy fuel oil (HFO) storage facility scheduled for later this year.
“While the project has been progressing without any major incidents, it has faced its fair share of challenges due to adverse weather, with storm-category gale force winds over the 2023 Easter long weekend causing damage to one of the tanks. With the wind the lifting of each steel shell plate, 12 metres long and 2.4 metres high, with plate thickness varying 8 to 20 mm, posed challenges to the contractor,” says Coega project manager, Christo Beukes.
Nomfundo Faltein, OEC managing director, expressed the company’s delight with the project’s progress.
“We are delighted with the progress made on the tank projects. It has been such a pleasure to work with Coega’s project manager, Christo Beukes, who has provided status updates to the Orion Team on a weekly basis, sharing openly the challenges and delays experienced during the project, with a view to promoting timely resolution and continued co-operation between all stakeholders involved. As Orion, we are grateful for the support received from the Coega Development Corporation. The continued existence of Orion in South Africa supplying the rubber industries with carbon black, as well as maintaining the jobs in the supply chain depend on this project,” said Faltein.
The OEC Oil Tank Farm Project entailed the development of two 18 000 m3 (cubic metre) tanks for the storage of carbon black feedstock oil, which is used in the manufacturing of tyres, amongst other high-performance applications. Each of the tanks has a total of 80 shell plates, totalling 19.2 metres in height and weighing a total of 289 tons per tank. A 5.4-kilometre pipeline from the Coega harbour to this new storage facility was also constructed, to pump the HFO from cargo vessels docked offshore.
Once operational, the OEC Oil Tank Farm Project will stimulate the entire value chain of the automotive sector, and increase exports from South Africa to Europe. OEC imports raw materials from the United States of America, performs high-value manufacturing in Nelson Mandela Bay, and exports high-grade carbon black, with 4 659 tons exported in 2022 alone.
Despite the technical complexities required to implement the project, Coega can report a total value of R11,17 million awarded to date in small, medium and micro enterprise (SMME) contracts. Furthermore, a total of 158 job opportunities were created, notwithstanding any upcoming opportunities ahead of project completion.
One of the local employees, Thabo Bali, OEC Tank Farm storeman from Wells Estate, highlights how the job has benefited him.
“When I received the call to come to work, that was a life-changing opportunity for me because I was staying at home, unemployed, and depressed, without any form of income. As soon I started working, I was beyond thrilled because I could finally afford the things that I desired. This is a learning curve for me as I am gaining a ton of experience, knowledge and had the opportunity to update my certificate for safety representatives on the various training we have undertaken, which is beneficial to me in terms of developing my curriculum vitae. I am extremely grateful for the opportunity that was offered to me because this job has made me physically, emotionally, and financially available for my family.”
Another local employee, Mzwabantu Bhungane, OEC Tank Farm general worker from Wells Estate, shared his words of gratitude.
“I’m immensely grateful for the opportunity that was offered to me after years of unemployment. This job helped me with many things because I was struggling without a source of income, but I am now able to take care of things at home, my family, and I was able to assist someone who is less fortunate financially. I want to encourage anyone who is currently unemployed not to give up; instead they should register themselves on the Coega database and keep updating their details to benefit from these kinds of opportunities. I know how challenging it is to be unemployed, and I hope job seekers are able to seize opportunities that will change their lives.”
Beukes explained that the construction of the tanks requires specialised skills and certified coded welders.
“Quality assurance of the works, especially all welding works, are key to ensuring that the final product meets all required standards and specifications.”
“As Motherwell councillors, we encourage any investment that seeks to advance and strengthen the Nelson Mandela Bay economy, while generating jobs in the process because we believe that job creation will contribute to assisting our communities with poverty situations, which is the major factor in our community’s lack of development,” said Bulelani Matenjwa, Ward 59 councillor. “We also believe that the tank farm project will help our communities enhance their skills and attract much-needed investment.
“The presence of carbon black in multiple industry applications means that it forms part of many consumable products that are manufactured in several industries. Ultimately, carbon black possesses significant economic value, and may be viewed as catalytic in driving the country’s job creation and development goals.
“Moreover, in 2022 OEC was awarded the Gold Medal by EcoVadis, one of the world’s most trusted sustainability ratings. EcoVadis evaluates companies’ sustainability performance in the areas of environment, labour and human rights, ethics, sustainable procurement, and overall sustainability governance,” shared Telly Chauke, Coega’s chief sustainability officer.
“The next big milestone is planned for end June 2023, when the two aluminium geodesic roof domes will be lifted into position by crane. However, absolute perfect weather conditions are required for this execution,” concluded Beukes.
