Barnes Group CEO Doron Barnes, whose company acquired Scaw Metals, together with its Haggie and McKinnon Chain units in May 2018, has announced in an Engineering News article that it is to invest in new steel making plant to increase Scaw’s steelmaking capacity from about 500 000 tons per year to 650 000 tons per year.
Continuing with the article Barnes says the intention is to position Scaw Union Junction to produce both long and flat steel, using an advanced solution that is being supplied by Danieli, of Italy, which also supplied substantial portions of Scaw’s current steelmaking and rolling plant units, installed when the company was still owned by Anglo American.
Half of the investment cost is being funded from internal Barnes Group resources, with the balance arising from a club loan that has been extended, in equal portions, by Absa, Investec and the IDC, which continues to hold a 26% equity position in Scaw Metals.
Under the contract, which was signed with Danieli in August 2021, Scaw will build a new flat-steel complex on the brownfield site in Gauteng for narrow and medium-width HRC, at gauges of between 1.2mm and 8mm.
The Barnes Group will absorb a portion of the output itself for further downstream processing at its Barnes Tubing operation in Isando and Hall Longmore operation in Wadeville, both also in Gauteng, where steel piping is manufactured. The balance will be sold into the merchant steel market or to re-rollers, which currently have no domestic flat-steel alternative to AMSA.
The contract with Danieli includes several components, including a medium-slab continuous caster and semi-continuous hot-strip mill, a reheating furnace, and a brownfield water-treatment plant. It also involves the revamping of Scaw’s existing meltshop, which includes a new-generation electric arc furnace.
The meltshop will be fed using a combination of scrap and direct reduced iron (DRI), produced using the mill’s existing kilns onsite.