News
Lionsteel South Africa Acquires Mozambique Steel Pipe Manufacturing Mill From Capital Africa Steel (Cas)
LionSteel South Africa has, after extensive negotiations with Capital Africa Steel, acquired the steel pipe manufacturing mill Capital Star Steel SA, located in Matola, Mozambique. The acquisition worth in excess of R500 million, involved a comprehensive debt restructuring with a syndication of four Mozambique banks, enabling CAS, the WBHO/Brait subsidiary, to sell 100% of its wholly owned Mozambican business to LionSteel SA.
Said Edwin Hewitt, CEO of CAS ” After an extensive global bid process, we were able to secure a mutually acceptable deal as a result of LionSteel’s Chief Financial Officer, Pierre Willemse presenting the successful offer to the Mozambique banking syndicate.”
The plant, commissioned in 2009 with International American Petroleum Institute accreditation, and a production capacity of 200,000 tons, is capable of producing steel ERW pipes from 8″ – 24″. A unique position of CSS is the installation of 2 coating plants within the production cycle, placing CSS as the only production facility of its kind on the continent, a facility fast becoming a prerequisite within the international pipeline community.
LionSteel SA, Chief Executive Officer, David Scheepers said “With current planned pipeline projects for gas infrastructure within the region exceeding 3,500kms, LionSteel SA believe the timing of this investment has placed Capital Star Steel as a strategic player in the market. We are also delighted that this acquisition includes the retention of key expertise and the necessary skills held by previous management and staff.”
The recent legislative support for local content within the Mozambique oil and gas sector has resulted in significant interest in Capital Star Steel’s role as a strategic supplier of pipes to the Mozambique oil, gas and water infrastructure. LionSteel SA believe that their acquisition of Capital Star Steel will not only enhance their local presence within these Mozambiquan sectors, but also raise their profile throughout the African continent.
– Engineering News