DEMAND FOR SCRAP METAL RISE

…..as UMCIL is considering importing the commodity from neighbouring countries to sustain its Kafue Steel plant.

UNIVERSAL Mining and Chemical Industries Limited (UMCIL) is considering importing scrap metal from neighbouring countries for its Kafue steel plant following poor supply of the commodity from the local market.

Plant technical director, Julius Kaoma, said the plant which was currently producing about 70, 000 of steel consumed a huge tonne of scrap metal which was not being sustained by the local market.

“We will continue to buy scrap metal but unfortunately the scrap availability is poor at the moment, we can boast that our plant consumes most of the scrap found in the country and now we are trying to buy some scrap from neighbouring countries so support us,” he said.

Dr. Kaoma said in an interview that as the company expanded production, it needed more scrap metal to produce a wide range of steel products.

He explained that the company was considering widening its production for steel products starting next year.

“When we are expanding production, we are also expanding the product range, the railway bars; we will be producing the sheets used for cars and wagons as well as the angle. We are even thinking of going into pipe manufacturing and wire manufacturing,” Dr. Kaoma said.

Meanwhile, Dr. Kaoma said the company was in discussion with Government for the construction a railway line from Mumbwa to Kafue.

Dr. Kaoma explained that the railway line was part of the US$500 million which the company would invest in the expansion of the Kafue steel plant next year.

He further explained that the establishment of the railway line would make transportation of steel and its products cheaper.

“To set up a railway line is not very cheap. So everything is going well, by next year, I think we will be finishing the feasibility studies for the Railway line. The railway line can even be extended to Angola later on, advantages include opening up the some areas in Kafue, agro business activities will increase and open up production for other products such as mining who will be free to use it,” Dr. Kaoma said.