Zisco potential investors’ adjudication this week

Michael Magoronga, Midlands Correspondent
THE adjudication process for Zimbabwe Iron and Steel Company (Ziscosteel) potential investors is expected to commence this week as the Government ramps up efforts to revive the company.

Zisco has received bids from seven potential investors from which one will be given the task to revive the steel giant.
The company’s board chair, Engineer Martin Manuhwa said they were pursuing a roadmap that involves modernisation and financial sustainability.

“This roadmap takes cognisant of its role as an enabler and that it has to operate above break-even point,” he said.

“The process has reached the stage where Zisco has received bids from seven potential investors of which the adjudication of the potential investors will commence this week.

“Ziscosteel revival will follow a roadmap and a technical pathway informed by the latest technologies and also the integration of what we still have and through bankable feasibility study, we will choose the best path.”

Before Zisco went to the market, several studies including technical evaluation, market study, were carried out. A strategy planning workshop was also conducted, which has come up with possible development trajectories to be possibly followed.

Eng Manuhwa said the level of technical obsolescence was captured by the professional engineering consultants who did the exercise.

The company has also laid out a role to be played by the company’s foundry and coking plant amongst others.

“Zisco has several plants, which are certainly in a relatively sound condition like the sinter plant, the steelmaking plant with a new six strand continuous caster, the bar rod mill and the lime kiln to mention some. This is going to form the basis of the company’s revival,” he said.

The company is currently seized with short-term revival strategies targeting resuscitation of subsidiaries and bargaining on low hanging fruits.

The Redcliff-based steel manufacturing firm ceased operations in 2008 due to poor management and lack of capital to recapitalise.