A second power transformer is set to strengthen Coega Steels’ operational resilience as the Eastern Cape steelmaker builds safeguards against electricity infrastructure failures that could disrupt production and threaten jobs. The first of two custom-built transformers went online in September, following their arrival in Gqeberha in July. The second is expected to be commissioned towards the end of the first quarter of 2027, providing additional capacity to mitigate the risk of unexpected equipment failure.
The investment follows a major disruption in August last year, when the plant’s existing transformer failed, placing the livelihoods of approximately 600 employees at risk. Nelson Mandela Bay Municipality subsequently leased the company a spare unit for 12 months, allowing production to continue while a permanent replacement was sourced. Coega Steels has since opted to install two new transformers, with both expected to operate concurrently once commissioning is complete.
“It is purely to mitigate risk to the plant and the company’s employees,” stated a company Spokesperson. The transformers were manufactured in China to specifications developed for the Gqeberha-based mini-mill. The procurement process involved identifying potential manufacturers worldwide, approving a prototype design and coordinating production, shipping and installation. Manufacturing a single transformer takes four to five months, while shipping the equipment to the Eastern Cape requires approximately 45 days. The overall process can extend to nine months.
Installation, testing and energising of the first unit began in August and took around 15 days to complete. Following the arrival of the new equipment in separate shipments about four weeks apart, the municipality’s leased transformer was removed and returned. The company expressed its appreciation for the municipality’s intervention during the disruption. The Spokesperson added, “We have written a letter conveying our sincere gratitude to the city.”
The transformer investment forms part of a broader effort to strengthen energy security and reduce exposure to electricity supply constraints. Only months before the new units arrived, Coega Steels completed what was described as the Eastern Cape’s largest commercial solar project. The installation comprises 11,484 panels with a generating capacity of up to 7 MW, providing an additional source of electricity for the steelmaking operation.
The company recycles scrap metal to produce steel commonly described as “green steel”, reflecting the generally lower emissions associated with scrap-based electric steelmaking compared with conventional coal-based ironmaking and steel production. Combining solar generation with more resilient power infrastructure gives the company two complementary tools: diversifying electricity supply and reducing the likelihood that a single transformer failure will interrupt operations.
The second transformer is therefore more than a replacement asset. It represents a risk-management measure designed to protect production continuity, support the workforce and reinforce the reliability of a steelmaking operation whose performance depends on uninterrupted power.