It is reported that East London's economy is set for a boost following the completion of a reinforcing steel factory in the city's Industrial Development Zone.

The IDZ said that the multi million rand factory, which started operations on March 15th 2010, is built by JSE listed construction group Murray & Roberts.

The ZAR 18 million reinforcing steel construction plant is expected to create several employment opportunities.

According to the plant's manager Mr Nick Lotter, the East London IDZ was the ideal place for the factory. He said that "Basically the East London IDZ has a good piece of level ground which made practical sense. It's also a closed secure environment. We are also close to the former Transkei where infrastructure development is needed."

He said that the plant was already functional and just needed a few finishing touches.

Mr Zwelethu Mhlophe sector manager of East London IDZ said that the factory was critical for the region as it would develop steel for reinforced concrete columns to be used in construction projects in the Eastern Cape. He added that "This is another investment by the East London IDZ and means new jobs will be created."

Mr Les Holbrook MD of Border Kei Chamber of Business said that of all the development nodes and zones in South Africa, the East London IDZ was proving to be the best, most efficient and cost effective location for new investment. He added that the jobs created and the contribution to the local fiscus would be invaluable and go a long way to helping with the massive economic backlogs.

(Sourced from www.busrep.co.za)