News / National
Zimbabwe's Dinson's steel plant reaches 60% production capacity
24 Oct 2024 at 13:13hrs | Views
The Dinson Iron and Steel Company's US$1.5 billion steel plant in Manhize, Midlands Province, has achieved 60% capacity utilization since starting production in July 2024. The plant, touted as Africa's largest steel manufacturing facility, is targeting to increase production to 75% by the second quarter of 2025.
Currently producing pig iron and steel billets, the company plans to begin manufacturing steel bars by April 2025, which will further boost capacity. The expansion is also set to create an additional 500 jobs, bringing the total workforce to 2,700 by mid-next year. Once the project reaches its final phase, Dinson expects to employ up to 10,000 people directly.
Dinson's projects director, Mr. Wilfred Motsi, confirmed that the plant's operations are steadily expanding. "We are currently operating at 60% capacity and expect to reach 75% next year when we introduce steel bars. This will significantly increase both production and employment," Motsi said.
The steel plant, which is part of China's Tsingshan Holdings Group, joins two other subsidiaries in Zimbabwe—Afrochine Smelting in Selous and Dinson Colliery in Hwange. In its first production phase, the Manhize plant is projected to produce 600,000 tonnes of steel annually, with this figure set to increase to 5 million tonnes by the project's final stage.
In support of its growing operations, the steel plant recently launched a 50-megawatt power plant to enhance energy self-sufficiency, consuming 28MW of the generated power while synchronizing the excess with the national grid. The plant's output is expected to generate net revenues of US$10 million during the first phase, eventually rising to US$4.5 billion in the final phase.
Though local industries are benefiting from the plant's current production, exports to international markets, including Asia and Europe, are expected to further boost Zimbabwe's economy. "We haven't started exporting yet, but we are producing for the local market, and sales are progressing well," Motsi added.
This project marks a significant milestone for Zimbabwe's steel industry, which has relied heavily on imports since the collapse of the Redcliff-based Zimbabwe Iron and Steel Company (Zisco) in 2008. At its peak in the 1990s, Zisco produced over 1 million tonnes of steel annually and employed more than 5,000 people. Dinson's rise is expected to help revive the sector, offering renewed hope for local steel production and economic growth.
Currently producing pig iron and steel billets, the company plans to begin manufacturing steel bars by April 2025, which will further boost capacity. The expansion is also set to create an additional 500 jobs, bringing the total workforce to 2,700 by mid-next year. Once the project reaches its final phase, Dinson expects to employ up to 10,000 people directly.
Dinson's projects director, Mr. Wilfred Motsi, confirmed that the plant's operations are steadily expanding. "We are currently operating at 60% capacity and expect to reach 75% next year when we introduce steel bars. This will significantly increase both production and employment," Motsi said.
In support of its growing operations, the steel plant recently launched a 50-megawatt power plant to enhance energy self-sufficiency, consuming 28MW of the generated power while synchronizing the excess with the national grid. The plant's output is expected to generate net revenues of US$10 million during the first phase, eventually rising to US$4.5 billion in the final phase.
Though local industries are benefiting from the plant's current production, exports to international markets, including Asia and Europe, are expected to further boost Zimbabwe's economy. "We haven't started exporting yet, but we are producing for the local market, and sales are progressing well," Motsi added.
This project marks a significant milestone for Zimbabwe's steel industry, which has relied heavily on imports since the collapse of the Redcliff-based Zimbabwe Iron and Steel Company (Zisco) in 2008. At its peak in the 1990s, Zisco produced over 1 million tonnes of steel annually and employed more than 5,000 people. Dinson's rise is expected to help revive the sector, offering renewed hope for local steel production and economic growth.
Source - The Herald
