Dinson Iron & Steel Company Zimbabwe (DISCO) Project Director Wilfred Motsi has announced plans to collaborate with Zimbabwe Iron and Steel Company (ZISCO Steel).
The deal will see DISCO supplying the raw materials while ZISCO would handle the market and distribution.
DISCO is a subsidiary of Tsingshan Holding Group of China, one of the world’s largest stainless steel producers.
It runs an integrated steel plant located in Manhize near Mvuma.
The plant is equipped with a carbon steel plant and an iron ore mine with a capacity of producing tonnes of iron and steel products per year.
Apparently, the fall of ZISCO steel a couple of years ago impacted negatively on the country’s economy.
ZISCO Steel, formerly a regional industrial giant, ceased operations in 2008 due to chronic financial challenges, mismanagement, and underinvestment, leaving thousands jobless and crippling Zimbabwe’s domestic steel supply chain.
During a recent Parliamentary session, Industry and Commerce Minister Mangaliso Ndlovu was grilled by Mbizo legislator Corban Madziwanyika on tangible progress toward the company’s revival.
However, the minister’s response offered little clarity, with broad references to fragmented initiatives and yet-to-be-finalised partnerships.
“The coming on board of Dinson Iron and Steel Company presents a unique opportunity to build synergies with ZISCO and other downstream industries such as Lancashire Steel,” Ndlovu said.
He revealed that the government is pursuing three main initiatives to aid the revival of the company, but critics argue the efforts remain disjointed and slow-moving.
The first project involves revamping Lancashire Steel’s wire mill plant, expected to resume production of wire rods, drawn wire, barbed wire, and galvanised wire.
Ndlovu said this would create over 20 jobs and support supply chains in both upstream and downstream industries.
Zwnews
