South Africa's civil engineering sector, hit by a slump in revenues as contracts fall, could shed thousands of jobs this year, a key industry official warned yesterday.

Twin tasks arise out of the takeover of Pechiney by Canada's Alcan group, which is now calling the shots THE planned $1,2bn aluminium smelter project at Coega in Eastern Cape will have to pass two major hurdles if it is to be saved, it emerged at the weekend.

Last year was a good year for the South African cement industry, with sales up by nearly 7% compared to 2002.

Work on the R2.65-billion deep water Port of Ngqura which started towards the end of 2002 is on schedule to finish next year, when the first ships are due to dock.

South Africa, hoping to copy the miracle that created Asia's tiger economies, is building a multibillion-rand duty-free industrial park, the first in a series aimed at boosting economic growth.

South Africa's largest industrial development zone (IDZ), the Coega IDZ outside Port Elizabeth, is "ready" if and when Canadian aluminium giant Alcan makes up its mind over the US$2.2bln aluminium smelter project originally agreed by Pechiney to be located there, before Pechiney's takeover by Alcan late last year.

The trade and industry department has confirmed that that minister Alec Erwin met representatives from Alcan and Pechiney, who visited SA last week, to assess the merits of Pechiney's proposed $2,2bn aluminium smelter at Coega.

Alcan comments on the proposed investments

Government and several parastatals made their biggest sales pitch yet last week when they met representatives of Canadian aluminium group Alcan in an effort to sell SA as the destination for a 2,2bn aluminium smelter at Coega in Eastern Cape.

Government says it is pulling out all the stops to secure SA's largest single foreign direct investment to date ahead of a meeting with representatives from Alcan and Pechiney in Gauteng today.