Chinese-funded steel pipe factory costing US$50 million opens in Mozambique

10 September 2009

Maputo, Mozambique, 10 Sept – A steel pipe factory, set up with Chinese, South African and Mozambican funds, was opened Wednesday in Beleluane, Maputo province, with an investment of US$50 million.

Built in the Beleluane Industrial Park, in southern Mozambique, which covers 700 hectares, the Mozambican steel pipe factory is owned by Capital Star Steel (CSS) S.A., a privately held company resulting from the partnership between South Africa’s Capital Africa Steel (Pty) Ltd, and Chinese giant Seven Star Group, with 40 percent each.

The remaining 20 percent of the project is in the hands of a group of Mozambican companies: Mozambique-Zimbabwe Pipelin Ciompany, Petromoc, Electricidade de Moçambique, Matola Gas Company and Petroline.

With markets already secured in South Africa and the United States, link to the oil and natural gas derivatives markets, the project will, in an initial phase, have capacity to produce 200,000 tonnes of steel pipes per year.

The raw material for production at the factory is expected to be imported from countries such as Turkey, China and South Africa. (macauhub)