Disco’s US$1,5bn steel plant complete
CONSTRUCTION of the US$1,5 billion steel plant in Manhize near Mvuma is complete, with the project tentatively set for commissioning on June 10 this year.
The plant, which is touted to be Africa’s biggest integrated steelworks, was built by Dinson Iron and Steel Company (Disco), one of the three local subsidiaries of China’s stainless steel producer Tsingshan Holdings Group Limited.
Locally, the group’s other subsidiaries are Afrochine Smelting in Selous, Mashonaland West province; and Dinson Colliery in Hwange, Matabeleland North province.
Speaking on the phone from Manhize on Friday, Disco project director Mr Wilfred Motsi said construction of the steel plant is complete, with a test run of the plant expected to start next month.
“Construction of the steel plant is complete in terms the blast furnace, sinter plant and the raw material complex. What is lagging behind now is power supply from Sherwood in Kwekwe to Manhize. We are going to start with a test run sometime between March and April and depending on the results of the test run, commissioning is tentatively set for the 10th of June if all goes well,” he said.
The commencement of operations under the first phase of the steel plant is a result of the Second Republic’s creation of a favourable investment climate under President Mnangagwa’s mantra “Zimbabwe is open for business”.
The scheduled opening of the project moves Zimbabwe into position as a steel manufacturing giant, expanding the mining industry as all raw materials are mined locally, the iron ore very close to Manhize. Thousands of new jobs are being created at the expanding steelworks.
“During the construction phase, most of the workers were from the construction sector but now we are in the process of employing those guys who will be operating the machines. We have started recruiting for the laboratories, data capturing and technical staff for the sintering plant, blast furnace and other sections of the plant. So far, we have 1 500 workers who are on the ground and by the time we start including construction guys, we are looking at employing 2 500,” he said.
Disco is projected to produce 600 000 tonnes of products in the first phase, rising to 1,2 million tonnes in the second phase.
In the early stages of production, Dinson plans to produce pig iron, followed by steel billets and steel bars before the end of this year.
Production is anticipated to rise to 3,2 million tonnes in the third phase and ultimately five million tonnes annually in the final phase, supplying a wide range of steel products to the Zimbabwean industry with direct employment figures at the steel plant reaching 10 000.
Net revenues are expected to be US$10 million during the first phase, before rising to US$4,25 billion under phase four of production.
The project will earn the country millions of dollars in exports as it becomes a major regional supplier and takes advantage of being located within the African Continental Free Trade Area, which is the world’s largest single market with 1,2 billion people and a gross domestic product of about US$3 trillion.
“So far, the market is excited about the steel project and we are receiving enquiries from across the country, not only those in the engineering, iron and steel sector, but also those with interest in open retail and distribution of steel.
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