Home Local News ZENT and Dinson Iron and Steel Company sign offtake agreement

ZENT and Dinson Iron and Steel Company sign offtake agreement

ZENT and Dinson Iron and Steel Company sign offtake agreement

Story by John Nhandara

ZESA Enterprises will be among the biggest beneficiaries of the Dinson Iron and Steel plant in Manhize following an agreement for the supply of 1 500 tonnes of steel every month for the manufacturing of line materials in electricity transmission and distribution.

A delegation from ZESA Enterprise (ZENT), a subsidiary of the Zimbabwe Electricity Supply Authority (ZESA) is back from China where several agreements in the energy sector were signed, among them an offtake agreement that will see it procuring steel from Dinson Iron and Steel plant in Manhize for the manufacture of electricity transmission and distribution materials.

The development was confirmed by ZENT’s Acting Managing Director, Dr Godfrey Mugaviri.

“We have cooperated in several areas which relate to steel tower manufacturing where we can then use the towers to rehabilitate our distribution network in Zimbabwe. The importance of that programme is that it will help improve the technical losses we are witnessing because of our old infrastructure. We have signed an offtake agreement.

“We are going to get over 1 500 tonnes of steel which we can then push into the economy both upstream and downstream. We will be the residual reference point for the distribution of steel across the country.”

Other synergies culminating from the agreements relate to the manufacture of lithium batteries and boiler manufacturing.

“We were in China and we saw one of the most compelling technologies related to boiler manufacturing, which in Zimbabwe we can deploy. We visited other companies in the development of renewable products and services. We want to manufacture lithium batteries which will help Zimbabwe to decarbonise the economy and contribute to various Paris agreements. Our relationship with Dinson will improve the performance of ZENT,” said Dr Mugaviri.

The two entities have also agreed to jointly set up a steel galvanising plant.

The Manhize Iron and Steel Plant is expected to cut steel imports by a wide margin from the current average of 400 million United States dollars per annum.