Downstream aluminium hub planned for Richards Bay in SA

The Richards Bay Industrial Development Zone (RBIDZ) in South Africa wants to establish an aluminium metals hub comprising downstream product manufacturers in the KwaZulu-Natal city to tap into the growing use of aluminium instead of steel by the automotive sector.

Aluminum has become the second most used material in the auto industry – next to steel – since it weighs less than half of steel or cast iron in the manufacturing process, Zululand Observer reported.

According to the Aluminium Association, an American organisation, the use of the metal in commercial vehicles continues to accelerate because it offers the “fastest, safest, most environmentally friendly and cost-effective way to increase performance, boost fuel economy and reduce emissions while maintaining or improving safety and durability”.

Aluminium based products such as high-end aluminium alloy or aluminium profiles and panels have increasingly become the material of choice for luxury cars such as Mercedes Benz, Audi and Land Rover.

“Richards Bay has the benefit of being the home to South32’s Hillside smelter – the largest aluminium smelter in the southern hemisphere,” said RBIDZ CEO Pumi Motsoahae. “This smelter produces more than 800 kilotons of aluminium per annum that provides substantial downstream beneficiation opportunities,” he said.

He added the aluminum hub will have the facilities for direct receiving of liquefied aluminium from the South32 Hillside smelter and it is intended to also attract downstream industries that will beneficiate not only aluminium, but also other ferrous metals.

“The aluminium hub will offer tenants a fully-serviced property located within a secure customs control area, which will reduce export and import duties as well as serve as a one-stop shop by clustering all the relevant government departments servicing investors moving into the hub,” Motsoahae said.

The South African aluminium industry is one of the industrial pillars of the South African economy, ranking eight in the world for aluminium production.

The sector generates significant foreign exchange revenues and provides more than 15 000 jobs.