Steel expansion gets under way

Press, 19 December 1981, Page 22

Steel expansion gets under way

PA Auckland A British company, Davy McKee (Minerals and Metals), Ltd, has been appointed project manager and engineer by New Zealand Steel Development, Ltd, for the SSOOM first stage of its steelworks expansion at Glenbrook, South Auckland.

The contract was officially signed in Britain by the Davy McKee chairman' (Sir John Buckley) and the New Zealand Steel. Ltd, chief engineer. Mr A. B. Cameron. It was witnessed by the New Zealand High Commissioner in London, the Hon. L. W. Gandar.

The first stage, which is

expected to be completed in 1984. will raise output of the primary and steelmaking facilities at Glenbrook from 150,000 tonnes a year to 770.000 tonnes a year. Under the contract, Davy McKee will be responsible for project design and engineering and a subsidiary, Pukekohe Construction Company, Ltd. incorporated in England, will be in charge of construction — including plant installation. A condition in the contract is that Davy McKee accept limited warranties relating to the iron and steelmaking processes involved, the capital costs and the completion

of the project in. the scheduled 30 months.

Detailed engineering work and levelling of the site has already begun and a team of managers and engineers has arrived in New Zealand to co-ordinate the local manufacture and construction of the plant. A contract for the second stage of New Zealand Steel Development. Ltd's S3OOM expansion will be announced early next year. Mr Cameron told a press conference in London.

The second stage, involving hot and cold rolling fin- < ishing facilities at the Glen- ; brook mill in South Auck- ’ land, has attracted tenders from about six international ' contractors, he said. Applica- , tions include Davy Corp, Ltd, the newly-appointed project manager for the first phase of the expansion, he said. The over-all expansion of the mill should be completed within 4Vz years, he added.

The first phase will be completed in 1984. The first phase is the major part of the expansion, covering iron and coal mining through to production of steel billets.

Credit arrangements for up to £SOM of U.K. supplies are being handled through Manufacturers Hanover, Ltd. in London.