THE establishment of the US$1,5 billion Dinson Iron and Steel Plant at the Manhize area in Chirumhanzu District in the Midlands Province is on track amid indications that the blast furnace superstructure is almost complete while the power line linking Sherwood in Kwekwe and the new giant factory is estimated to be 60 percent complete.
The completion of the blast furnace superstructure and the availability of power are critical steps before the commencement of production at least by the end of the year.
Chinese investor, Dinson Iron and Steel Company (Disco) is implementing the project, one of Africa’s largest integrated steel plants near Mvuma, and formal production is scheduled for completion in the next quarter.
The completion of the project will result in a massive cut in Zimbabwe’s steel import bill while creating massive job opportunities for locals.
Disco, a unit of China’s Tsingshan Holdings Group Limited, has said progress is now above 70 percent complete and would produce 1,2 million tonnes of steel annually in the first phase, and subsequently raise the capacity to five million tonnes at full throttle.
Disco public relations manager, Mr Joseph Shoko, said they were excited with the level of construction progress.
“We are on track. The blast furnace superstructure is almost complete. The Sherwood-Manhize power line work is in full force. That being an important factor, we are poised to achieve on time and then production should start as scheduled,” he said.
Mr Shoko said clearance for the Sherwood Manhize power line has been completed adding that more than 60 percent of excavation has been done.
Zimbabwe Institute of Foundries chief operations officer Mr Dosman Mangisi said Disco’s massive production capacity augers well with the economy.
“That alone gives us a picture that there is a very positive impact, which will see the easing of the forex dilemma in the country because there will be import substitution on steel and related products,” he said.
“Zimbabwe is importing 75 percent of its steel and considering that Dinson is far way bigger than the capacity of Zisco, downstream industries are also going to grow because of the availability of pig iron, as well as the rapid increase in employment.”
In the long term, Disco would spur the growth of Zimbabwe’s iron and steel engineering industry, which took a heavy battering following the collapse of the Zimbabwe Iron and Steel Company (Zisco) in 2008, once the largest steel manufacturing plant north of Limpopo.
Since the closure of Zisco, Zimbabwe has been spending over US$400 million annually in importing steel products from the Southern African Development Community (SADC), mostly South Africa.
It is believed local steel manufacturing by the Chinese investors would cut imports by 90 percent. The steel plant was commissioned by President Mnangagwa paving the way for construction works that started last year.
The US$1.5 billion project is envisaged to have a positive multiplier effect on the economy, which would be felt in both upstream and downstream industries.
Already buildings have emerged out of thick forests, where staff houses, warehouses, and a cement mixing plant are being constructed.
In 2021, steel and iron products imports soared to nearly US$410 million from US$306 million a year earlier, according to figures from the Zimbabwe National Statistical Agency, driven by a series of public and private infrastructure programmes.
High-end steel and iron products have also pushed demand up. According to ZimTrade, potential export markets for Zimbabwe include Zambia, Botswana, Angola, the Democratic Republic of Congo, Malawi, Mozambique, and Namibia.
The global Trade Map has shown that Zambia imported iron and steel worth around US$226 million in 2020, with the majority coming from South Africa (US$113 million), China (US$64 million), Chile (US$27 million), and India (US$3 million). In terms of quantities, Zambia has been importing more iron and steel over the years, from around 58 000 tonnes in 2018 to around 81 000 in 2021.
Preliminary indications are that Disco would create 10 000 jobs directly once the Manhize operations start, while 1 700 jobs have been created from the works already underway. At its peak in the 1990s, Zisco produced over one million tonnes of steel and employed over 5 000 people directly, while thousands were employed in downstream industries.
The establishment of the steelworks will see the launch of a number of infrastructural projects such as road and rail networks, and a dam to provide water for domestic use, irrigation and industrial operations at the plant.
The development of the steelworks will also see a new town sprouting as well as a number of infrastructural development projects.
Such projects include a bridge Disco has constructed over the Munyati River, the development of a road and rail network, and a dam to provide water for domestic use and industrial operations at the steel plant.
An irrigation project is also on the cards in line with the Second Republic’s thrust of stimulating production across all sectors of the economy as enshrined in the National Development Strategy 1 (NDS 1) towards an upper middle-income economy by 2030. – The Chronicle
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