adminTHE government has started moves to re-open tube and wire manufacturer Lancashire Steel ahead of resumption of operations at NewZim Steel, a senior official has said.
Government announced in October last year that it planned to resume operations at the company, which manufactures steel rods, wire and other steel products.
The company has said it requires about $4 million in working capital to resume operations.
Industry and Commerce acting permanent secretary Stansilaus Mangoma said the company would initially be importing steel billets while waiting for resumption of operations at NewZim Steel (formerly Zisco Steel).
Steel billets result from the second stage of the steel production process and are used for the manufacture of all “long” steel products such as bars, rods, pipes, tubes and wire products.
“Some of the operations could start particularly on Lancashire Steel where we could import some billets for use for a while,” he said.
He, however, did not reveal exactly when the company would start operating.
Turning to progress made towards resumption of operations at NewZim Steel, Mangoma said every effort was being made to ensure the steel company comes back on line.
“What I can confirm is that most of the processes have been finalised now.”
Government sold a 54 percent stake in the former ZiscoSteel to Indian firm, Essar Africa Holdings in 2011.
Despite the signing of the $750 million agreement for the takeover of the company, disagreements over the control of iron ore reserves in Mwanesi hampered speedy implementation of the deal.
Resumption of operations at NewZim Steel will also boost other firms such as Lancashire Steel and those in the manufacturing of steel products like window and door frames as raw materials would be locally available.
Zisco, which employed more than 3,000 workers, used to be the biggest integrated steel works in Africa and produced more than one million tonnes of steel a year at its peak. — New Ziana
Online Reporter