Ashly DhaniOliver Kazunga
DINSON Iron and Steel Company, which recently commenced operations, has started the production of steel billets, setting another milestone at the US$1,5 billion plant in Manhize near Mvuma in the Midlands Province.
The latest development, which comes hard on the heels of pig iron production last month, is expected to benefit players in the local engineering, iron and steel industry by easing access to raw materials.
Since the closure of the Redcliff-based steel manufacturer, Zisco — once the largest integrated steel plant north of Limpopo in 2008, domestic firms have been importing steel and other related raw materials in the region and abroad to countries such as China and India.
Posting on its official X handle this week, Dinson said: “We have taken another step forward —DISCOSTEEL has officially started producing steel billets.”
Under the first phase, Disco projects 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, the steel manufacturing concern will be producing pig iron, steel billets and steel bars before the end of the year.
Following the commencement of production, Dinson project director, Wilfred Motsi, told this publication last week that his organisation has not started selling pig iron as they were stockpiling the product.
“We have not started selling the pig iron yet, but we are stockpiling and once we reach meaningful output, we will then start processing the orders that have been made by the market,” he said.
Production at the steelworks is expected to rise to 3,2 million tonnes in the third phase and later to five million tonnes annually in the final phase with at least 500MW required to power the plant.
While supplying a wide range of steel products to the domestic market, Dinson aims to employ over 10 000 people directly.
The company is one of the three local subsidiaries of China’s Tsingshan Holdings Limited.
The group’s other local subsidiaries are Afrochine Smelting in Selous, Mashonaland West Province and Dinson Colliery in Hwange, Matabeleland North Province.
In a recent interview, the Zimbabwe Institute of Foundries (ZIF) chief operating officer, Dosman Mangisi, said the commencement of production at Manhize unanimously transforms the local industry.
“The commencement of operations at the steel plant will definitely yield a major impact and change to the local industry, which at the moment is grappling with shortage of raw materials and the knock-on effect has depressed production by companies in engineering, iron and steel sector including foundries.
“Commencement of production at the Dinson steel plant will see all sectors particularly those in engineering, iron and steel industry improving their production levels as raw materials will be easily accessible and competitively- unlike the current scenario where most of our players are importing,” he said.
As a result of Zisco’s closure, the country has lost millions in foreign currency importing steel and related products.
At its peak in the 1990s, Zisco produced over one million tonnes of steel per annum employing more than 5 000 people directly.
Online Reporter