Wednesday, August 23 2006 10:19 Hrs (IST) - World Time -

Durban: After gaining environment clearance for its steel plant in South Africa's KwaZulu-Natal province, Tata Steel yesterday (Aug 22, 2006) launched construction of the 650-mnRand (over Rs 4200 mn) ferrochrome smelter plant at Richards Bay, about 250km north of here.

The company had chosen to build the ferrochrome plant at Richards Bay because it was the biggest and most efficient port in South Africa, said the Indian conglomorate's chairman Ratan Tata in a message read out by Tata Steel Managing Director B Muthuraman at the opening ceremony.

"With the receipt of environmental and other clearances from the ministries concerned, there will now be no looking back for Tata Steel KZN ", he said.

The company was committed to commissioning the 135000 tons-a-year plant on schedule in October next year. It would be the fastest ferrochrome development project in the world.

Tata said South Africa was an important investment destination for his group, with several of its companies already having a presence in the country.

"With Tata Steel's arrival, the bond of the Tata Group with the people of this wonderful republic will only become deeper with time. Tata Steel KZN will seek to maximise returns to all its stakeholders, including its employees and the people around its neighbourhood", he said in the massage.

The ceremony was attended by South African Deputy President Phumzile Mlambo-Ngcuka; Tata Africa Holdings Managing Director Raman Dhawan, Tatal Steel KZN Managing Director Somdeb Banerjee and Premier of the KZN province Sbu Ndebele.