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Oliver Kazunga
Senior Business Reporter
DINSON Iron and Steel Company (Disco) has so far invested US$750 million into the construction of its US$1,5 billion steel plant in Mvuma, Midlands Province, with the project now 60 percent complete.
The development of the steelworks, which is touted to be Africa’s largest integrated steel plant, began in 2022 with an initial production deadline of August this year, but this has since been pushed back to November 2023 due to incessant rains the country experienced early this year, which disrupted construction.
Disco is one of the three local subsidiaries of China’s largest stainless steel producer, Tsingshan Holdings.
The group’s other local subsidiaries are Dinson Colliery and Afrochine Smelting (Pvt) Limited.
Speaking by telephone in an interview from Bulawayo, where he is attending the ongoing Zimbabwe International Trade Fair (ZITF), which ends tomorrow, Disco project director Mr Wilfred Motsi said: “We have so far sunk US$750 million into the construction of the steel plant and the mining site.
“The project is now 60 percent towards completion and I think if everything goes according to our plan by November we’ll be opening the steel plant.”
At full throttle, the steel plant is expected to produce 1,2 million tonnes of steel annually with the first phase of the investment targeted to produce 600 000 tonnes of carbon steel per year for local and export markets.
As a result of the development of the steel plant in Manhize, a new town is sprouting while a number of infrastructural development projects are also coming on board.
New projects linked to the steelworks plan include a bridge Disco has already constructed across Munyati River, road and rail networks in the area and a dam to supply water for domestic and industrial use.
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) and Vision 2030 aspirations.
On the development of a 50-km rail network from Mvuma to the steel plant, Mr Motsi said: “We are working together very well with NRZ and we have been having a series of meetings discussing modalities of railway, so far we are working on feasibility studies.”
Disco has signed a Memorandum of Understanding with the Government to refurbish and construct a 1 000-km-long railway line for a dedicated, reliable, uninterrupted and efficient transportation of the firm’s products to local and export-imports markets.
Dinson said it was willing to partner with investors in the construction of the railway line, and that interested partners would recoup their investment by charging for loads carried on the railway line.
“There are both local and foreign consortiums — we have outsiders with great interest as far as China and South Africa,” he said.
Commenting on the significance of ZITF to the creation of business linkages for his company, Mr Motsi said this year’s event was an eye-opener, pointing out Disco would next year be able to exhibit its products at Zimbabwe’s premier trade showcase.
“Although we are not exhibiting at the trade fair this year, the event is serving as an eye-opener because once we start production this year, next year we will use the ZITF as a platform to scout for markets for our products,” he said.
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