Zimbabwe’s steel industry set for growth with Disco’s $1.5bn plant

Zimbabwe is gearing up to become a global steel manufacturing hub with the construction of a $1.5 billion steel and iron plant by Disco, a subsidiary of the Chinese iron and steel giant Tsingshan Holdings.

HARARE, ZimbabweZimbabwe is gearing up to become a global steel manufacturing hub with the construction of a $1.5 billion steel and iron plant by Disco, a subsidiary of the Chinese iron and steel giant Tsingshan Holdings.

The plant, located in Manhize, approximately 200km south of Harare, is poised to elevate Zimbabwe’s standing in the steel and iron industry.

Disco’s projects manager, Mr. Wilfred Motsi, confirmed that the production’s first phase is set to commence in February, marking a significant milestone for the country’s industrial sector.

The plant aims to produce pig iron in February, steel billets in May, and steel bars in October, contributing to the estimated production of 600,000 metric tonnes in the initial phase.

Mr. Motsi outlined the company’s ambitious production targets, projecting an increase to 1.2 million tonnes in the second phase, 3.2 million tonnes in the third phase, and a staggering five million tonnes per year in the final phase.

The diverse product range includes pipes, bolts, nuts, slags, rolled tubes, fences, shafts, wires, and bars.

The economic impact of Disco’s venture is substantial, with net revenues expected to reach $10 million during the first phase and rise to an impressive $4.25 billion in the fourth phase of production.

In terms of employment, Disco anticipates directly employing 3,000 workers in the initial phase, with the figure expected to surge to 25,000 in the fourth phase.

From left: Principal private secretary to the President, Ambassador Taonga Mushayavanhu, Veterans of the Liberation Struggle Affairs Minister Ambassador Christopher Mutsvangwa, chairman-CEO of Tsingshan Zimbabwe Kemin Benson Xu, and chairman-CEO of Tsingshan Mozambique Johnson Sun.
From left: Principal private secretary to the President, Ambassador Taonga Mushayavanhu, Veterans of the Liberation Struggle Affairs Minister Ambassador Christopher Mutsvangwa, chairman-CEO of Tsingshan Zimbabwe Kemin Benson Xu, and chairman-CEO of Tsingshan Mozambique Johnson Sun.

Last week, Dinson Holdings chairman, Mr. Chen Shansong, visited Zimbabwe to assess progress ahead of the plant’s commissioning.

The visit included the signing of a tariff agreement with ZESA Holdings, securing subsidised electricity for Disco in return for the construction of three renewable energy plants, totalling 270 MW.

The developments around the steel plant extend beyond production. A new mineral value-addition industrial park and town are in the works.

A railway line connecting Manhize to Mutare up to Beira in Mozambique is planned to facilitate the transportation of bulk goods.

Additionally, the Forbes-Machipanda One Stop Border Post, the revitalized Beira-Machipanda railway line, and two new terminals at Beira port aim to streamline logistical operations for Disco’s exports.

Minister of Veterans of the Liberation Struggle Affairs, Christopher Mutsvangwa, highlighted the visionary leadership of President Mnangagwa, emphasizing the revival and restoration of Zimbabwe as the economic hinterland of central Mozambique.

The upgrading of bilateral diplomatic relations between Mozambique and Zimbabwe reflects a commitment to shared prosperity and regional cooperation.

RosGwen24 News
RosGwen24 News
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