Online Reporter
Martin Kadzere
DINSON Iron and Steel Company (DISCO), a major player in Zimbabwe’s re-emerging steel industry, has commenced exports to South Africa.
This comes amid challenges for South Africa’s domestic steel sector, particularly for industry giant ArcelorMittal.
Disco is currently producing pig iron and steel billets.
A subsidiary of China’s Tsingshan Holding Group, Disco started production last year and has rapidly ramped up its output, with an annual target of 600 000 tonnes in its first phase, aiming for an eventual five million tonnes per year.
“We are starting to see orders come in from South Africa. While they are not massive yet, it’s a promising start,” Disco project director Mr Wilfred Motsi said in an interview.
Steel exports into the South African market coincide with a period of severe distress for ArcelorMittal South Africa.
ArcelorMittal is locked in negotiations with the South African government to prevent the potential closure of its long steel operations, a move that threatens approximately 3 500 direct and indirect jobs.
The company cites weak domestic demand, intense competition from local scrap metal recycling mini-mills, and a flood of cheaper imports, notably from China, as key factors undermining its viability.
Bongani Ndlovu