leeroy mupariri
Business Reporter
Dinson Iron and Steel Company’s US$1,5 billion steel plant in Manhize has reached 60 percent operating capacity utilisation since production commenced in July this year.
The company is targeting to ramp up production to 75 percent of plant capacity by the second quarter of next year.
The steel plant will start manufacturing steel bars in April 2025. Dinson is presently producing pig iron and steel billets. New products will increase capacity utilisation.
In addition to improving capacity utilisation, the steel plant in Manhize near Mvuma in the Midlands Province expects to create 500 additional jobs in the second quarter of next year.
It is hoped that 10 000 people will be employed directly by the company when the project reaches the fourth and final phase of production.
Dinson’s project is touted as Africa’s biggest steel plant, employing 2 200 people.
Dinson projects director Mr Wilfred Motsi confirmed in an interview that the company would soon start manufacturing steel bars, part of the firm’s product range under the first phase of production, in the second quarter of next year.
“Currently, we are operating at 60 percent capacity utilisation and we expect to reach 75 percent in the second quarter of next year when we introduce steel bars on our product range.
“Employment figures, as a result of the steel bars that we will be producing, will rise to 2 700,” he said.
The steel plant is one of the three local subsidiaries of China’s Tsingshan Holdings Limited and the group’s other subsidiaries in Zimbabwe are Afrochine Smelting in Selous, Mashonaland West Province and Dinson Colliery in Hwange, Matabeleland North Province.
The steel plant is projected to produce 600 000 tonnes of products annually under the first phase rising to 1,2 million tonnes in the second phase.
Production will rise to 3,2 million tonnes in the third phase and ultimately five million in the final phase, supplying the full range of steel products to local and foreign markets.
A 500-megawatt power plant will be required to support the steel plant.
Recently, the steel producer launched its 50MW power plant to achieve energy self-sufficiency and decrease its dependence on the national grid.
At present, the steel plant is consuming 28MW and plans are underway to synchronise the remaining capacity into the national grid. Net revenues are expected to be at US$10 million in the first phase and will rise to US$4,5 billion in the final phase of production.
Zimbabwe is expected to earn millions of dollars in exports once the firm starts exporting to regional and international markets such as Asia and Europe.
“So far, we haven’t started exporting but we are producing for the local market.
As for the tonnage that we are producing, I don’t have the figures off hand but we have started selling and in terms of our sales figures so far, I would need to get those from our sales department,” said Mr Motsi.
Since the closure of the Redcliff-based steel manufacturer, Zisco — once the largest integrated steel plant north of Limpopo in 2008, local industries have been importing steel and other related raw materials in the region and abroad to countries such as China and India.
At its peak in the 1990s, Zisco produced over one million tonnes of steel annually employing more than 5 000 people directly.
Online Reporter
