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South Africa's Unica Iron and Steel lands landmark Indian contract amid industry turmoil

South Africa's Unica Iron and Steel lands landmark Indian contract amid industry turmoil

IOL News4 days ago

In a moment of rare triumph for South Africa's embattled steel industry, Unica Iron and Steel (Pty) Ltd has secured a major international contract to supply structural steel for a high-profile smart city development in Hyderabad, India.
The deal, estimated at more than R500 million, marks a significant victory not only for the company but for the country's push for industrial transformation.
What makes this agreement particularly historic is the composition of the engineering team leading Unica's work on the project.
All engineers assigned to the Hyderabad development are young black professionals from the townships of Pretoria, including Hammanskraal and Babelegi, where Unica's main operations are based. This team will be responsible for overseeing the fabrication and modular assembly of over 14 000 metric tons of structural steel, destined for Hyderabad's upcoming Innovation and Mobility District.
The district is central to India's broader 'Digital Cities' programme and includes a multimodal transport hub, tech incubators, and high-density commercial space.'This is not just steel. This is a symbol of inclusion and excellence,' said Thabiso Mokoena, a 32-year-old civil engineer from Hammanskraal who will lead one of the site teams in India. 'We come from places that were never part of the national industrial conversation.
Now, we are building a city.'The project's chief architect, Rajesh Kumar, underscored the significance of Unica's team selection. 'Their proposal stood out not only for its technical merit, but for its deep commitment to transformation. It is rare to see such alignment between business excellence and social progress,' he said.
Despite this global breakthrough, Unica is simultaneously locked in a high-stakes battle on the home front. The company has come under scrutiny following a series of raids by the Department of Home Affairs, spurred by anonymous allegations of human trafficking and employment of undocumented workers.
In a strongly worded statement this week, Unica described the claims as part of a 'concerted effort by sinister agents' to discredit the company during a sensitive time. 'There have been several site visits by authorities,' said Managing Director Mohammed Qasim. 'None of them resulted in arrests or adverse findings.
These allegations are not only false but damaging to our workers and our communities.'Unica has also challenged a previous decision by the Industrial Development Corporation to blacklist the company and its directors.
The move followed a forensic audit triggered by a whistleblower report alleging financial irregularities, including payments to entities like KGN Engineering. Unica denied the allegations and won a court interdict in February 2025, temporarily clearing its name. The IDC has since suspended its blacklist pending further judicial review.
Still, Qasim insists that the company remains focused on its mission. 'We are proud of what we have built. Our workforce is 96 percent South African. We are proving that industry can grow without compromising on integrity or transformation.'
For many in Hammanskraal and Babelegi, this moment is personal. As the steel from South Africa begins to shape a new skyline in Hyderabad, it carries with it the ambitions of communities long sidelined in the country's economy.

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