SAIL has core competencies in the steel manufacturing business and currently operates five integrated steel plants across India. It is currently also exploring investment opportunities in Indonesia, Oman and Mongolia.
Virendra Gupta, Indian High Commissioner to South Africa, who was instrumental in facilitating this agreement said, "India and South Africa share a common and historical bond. This agreement represents one of the largest inbound investments into South Africa and we are excited at the prospect of companies from our two respective markets forging such a close association, which will bring our countries and markets closer together."
Lazarus Zim, chairman of Afripalm Resources, also expressed his appreciation for SAIL having made the decision to enter South Africa. "I'm delighted at the prospect of servicing the domestic and international markets to ensure the introduction of healthy competition in the local market."
The parties have agreed to commission a detailed feasibility study on the proposed plant, which is expected to be completed in the next six months. In the interim, the parties have agreed to establish a South African based distribution and trading facility that will provide the South African market access to the range of products currently manufactured by SAIL.
