Zimbabwe to reduce steel imports by 90 %
Story by John Nhandara
POWER utility ZESA Holdings has signed a memorandum of understanding with Dinson Iron and Steel Company to procure steel from the steel manufacturing firm.
Local companies are set to reduce their steel and steel products import bill as a result of the 1.5 five billion United States dollar Manhize Dinson Iron and Steel plant under construction in Mvuma.
This Friday, ZESA Enterprises, a subsidiary of ZESA Holdings which houses the manufacturing and projects divisions of the power utility, signed a memorandum of understanding with the Dinson Iron and Steel Company to meet its requirements in the fabrication of steel products.
Executive Chairperson of ZESA Holdings, Dr Sydney Gata said, “We are going to procure steel products that we need from Manhize. We have been importing from as far as Japan and India and this is a game changer.”
The deal will also culminate in the power utility penetrating the regional market in the supply chain of products like transformers.
“We have a manufacturing division of steel towers and transformers. This signing ceremony will give us the capacity to participate in the regional market. We have existing contractual agreements in the supply of transformers with companies like ZESCO of Zambia, Rwanda Energy Group, and EDM of Mozambique,” said Managing Director of ZESA Enterprises, Dr Godfrey Mugaviri.
Dinson Iron and Steel Company Managing Director, Mr Benson Xu took the opportunity to give an update on progress made in the construction of the steel plant.
“For Vision 2030 to materialize we need steel as it is part of the industrialisation. In December we will be opening the blast furnace and in March next year we will open the steel mill,” he said.
The Manhize Dinson Iron and Steel project, which is set to become Africa’s biggest integrated steel plant will see the country reduce its steel products import bill by 90 %.
