The new hot-strip mill complex makes use of many modern, Danieli Green Steel technologies, from melting through finishing.

Since producing its first hot rolled coil in late 2024, Scaw Metals’ Hot Strip Mill (HSM) at its Union Junction complex has progressed steadily from commissioning and product qualification into a rapidly maturing operation that is now delivering meaningful volumes to the South African flat steel market.

The R5 billion steel investment, which has been 75% funded by Absa and Investec and 25% funded by the State-owned Industrial Development Corporation, is the first new flat-steel mill to be built domestically since Saldanha Steel in the 1990s, but which has since been mothballed. The project is expected to increase Scaw’s overall steelmaking capacity from about 500 000 tons per year to 750 000 tons per year once fully ramped up.

The Barnes Group acquired Scaw Metals, together with its Haggie and McKinnon Chain units, in May 2018.

The new hot-strip mill complex makes use of many modern technologies, from melting through finishing

The commissioning of the Hot Strip Mill marked a significant milestone for both Scaw and South Africa’s steel industry. As the country’s first new flat-steel mill to be commissioned in decades, the investment reintroduced competition into the local flat steel market and expanded Scaw’s product offering beyond its traditional long-steel portfolio.

From the outset, management recognised that ramping up a modern flat-steel mill would require a phased approach focused on process optimisation, product quality and operational stability. Since its original production commenced in October 2024, the mill has gradually increased output as production teams worked through commissioning challenges, system integration requirements and the development of capabilities across a range of thin-gauge hot rolled coil products.

The ramp-up journey has demonstrated the effectiveness of Scaw’s execution strategy. The construction phase was completed with commendable schedule adherence, supported by a management approach that ensured key decision-makers remained closely involved on site. This enabled challenges to be resolved quickly and efficiently, avoiding lengthy approval processes and helping the business maintain momentum throughout the project.

Over time, production volumes have increased consistently as operational experience has grown and processes have stabilised. Following the commissioning period and subsequent optimisation initiatives, the mill is now operating at significantly higher levels than during its early production phases and is currently producing approximately 25 000 to 30 000 tons of hot rolled coil per month. This represents a major achievement when compared with initial startup volumes and reflects the significant progress made by operating, maintenance and technical teams over the past two years.

Equally encouraging has been the steady improvement in mill yields and product quality. During the commissioning phase efforts focused strongly on quality control, process discipline and achieving tighter operational control across different product specifications. As a result, yields have improved progressively over time as operators gained experience and operational efficiencies were achieved across various hot rolled coil gauges and dimensional tolerances. These improvements have reduced process losses, enhanced product consistency and strengthened the mill’s overall competitiveness.

The progress is particularly noteworthy given the challenging market conditions encountered during the ramp-up phase. The HSM entered a highly competitive market environment characterised by
imported material, pricing pressure and aggressive volume strategies from established producers. Delays in the implementation of safeguard measures also contributed to increased import competition during the mill’s early operating period. Despite these headwinds, Scaw continued to build market presence while simultaneously improving its production performance and product quality.

Looking ahead, the outlook for the Hot Strip Mill remains positive. Although some safeguard protections and anti-dumping measures are in place to supporting the domestic market, much more is required to provide a sustainable environment for local producers to prosper and protect local
sales volumes and pricing. Combined with ongoing operational enhancements and continued yield improvement, the mill is well positioned to increase its contribution to Scaw’s broader growth strategy and to South Africa’s manufacturing sector.

For further information visit https://www.scaw.co.za