Tsingshan to invest $800m in Zimbabwean steel plan...

Tsingshan to invest $800m in Zimbabwean steel plant expansion

Chinese nickel giant Tsingshan to invest $800m in Zimbabwe steel plant

Philemon Jambaya

Zim Now Editor

Zimbabwe is set to witness a significant boost in its steel production capacity following an announcement by Chinese nickel producer Tsingshan Holding Group to invest $800 million in expanding its steel plant in the country. The investment will be made through its unit, Dinson Iron and Steel Company, which has already established a strong presence in Zimbabwe with operations in ferrochrome, coking coal, and lithium.

The expansion project will involve the construction of a blast furnace, centering, rolling, and steel plants, as well as supporting infrastructure. According to project director Wilfred Motsi, the expansion could raise carbon steel production from 600,000 metric tonnes annually to 1.2 million tonnes. "The fresh investment will fund construction of a blast furnace, centring, rolling, and steel plants, as well as supporting infrastructure," Motsi said.

The project's first phase includes a 50-megawatt thermal power plant designed to ease reliance on Zimbabwe's fragile grid. Additional power will also be generated from furnace gas, covering about 20% of the plant's needs. This will help reduce the plant's reliance on external power sources and increase its overall efficiency.

Zimbabwe's Information Minister Jenfan Muswere said the expansion would help cut the nation's annual steel import bill. "The government considers steel production a cornerstone of its efforts to revive manufacturing and boost infrastructure development," Muswere emphasized. The government is positioning itself to host Africa's largest steel plant, a project that could transform the nation's economy.

The collapse of Zimbabwe's largest steel facility in 2008, following years of mismanagement, underinvestment, and economic decline, has forced the country to spend over $1 billion each year on steel imports. The expansion of Tsingshan's steel plant is expected to help reduce this import bill and boost the country's economy.

"The expansion could raise carbon steel production from 600,000 metric tonnes annually to 1.2 million tonnes," - Wilfred Motsi, Project Director

"The government considers steel production a cornerstone of its efforts to revive manufacturing and boost infrastructure development," Jenfan Muswere, Information Minister

The investment by Tsingshan Holding Group is a significant boost to Zimbabwe's steel industry, which has been struggling to recover from years of decline.

The expansion of the steel plant is expected to create new opportunities for economic growth and development in the country. As Zimbabwe positions itself to host Africa's largest steel plant, the future of the country's steel industry looks promising.