Lancashire Steel revival deal on course: Minister
A JOINT VENTURE between Kwekwe-based Lancashire Steel and Indian investor Whinstone Enterprises is taking shape, with the pact set to be tabled before Cabinet for approval.
The two parties signed an agreement in July last year, with the Indian investor expected to satisfy the much-needed financial obligation, while Lancashire Steel offers labour, skills and equipment.
Industry and Commerce Minister Mangaliso Ndlovu said the deal is supposed to sail through Cabinet and the Parastatal Restructuring Committee before the implementation stage.
“It is true that there was a deal between Lancashire and an Indian investor. The deal, however, needs to be regularised and it will have to go through those two phases — Cabinet and the Parastatal Restructuring Committee for further scrutiny,” he said.
Minister Ndlovu said the two parties were confident that the deal would come to fruition, trashing reports from some quarters that it had collapsed.
“The deal is not off the table, at this point it is important for the two parties to follow laid-down procedure,” he said.
“In this case, it is a joint venture and it is important that the two parties agree and follow procedure for the benefit of everyone and the nation.
“On our part as Government, we are committed to see the revival of the company and I am sure our partners are also confident of the same. We are keen to see progress not only in the Midlands, but in the country’s industries and I assure you, before you know it, there will be a bit of some progress.”
On Wednesday, Whinstone Enterprises flighted an advertisement calling for long-time employees to submit their curricula vitae and profiles as “a matter of urgency” to the plant offices in Kwekwe.
“I am yet to see the advert, but well, I think they, too, are confident that the deal will sail through, but I think it was a bit ahead of time, it needs to go through the proper process,” said Minister Ndlovu.
Lancashire Steel suspended operations in 2010 following the demise of Ziscosteel, its major raw material supplier.
If successful, the five-year deal will be implemented in phases, with the refurbishment of the plant and wire, as well as rod mills being the first phases.
If operational, the company can employ about 600 workers.