News / National
Zimbabwe steel production cuts import reliance
15 Apr 2025 at 08:43hrs | Views
A monumental step forward for Zimbabwe's import substitution strategy has been achieved with the commencement of extensive finished steel production at the Dinson Iron and Steel Company (Disco) plant in Manhize, Midlands Province. This game-changing development promises to significantly boost the nation's industrial transformation agenda, marking a pivotal moment in Zimbabwe's drive to reduce reliance on imports and foster economic growth.
The multi-million-dollar project, which reflects the government's pro-investment policies under the Second Republic, is expected to have far-reaching benefits for Zimbabwe's economy, particularly in the steel and manufacturing sectors.
Historically, Zimbabwe has spent around US$1 billion annually on steel imports. With the Disco plant now in full production, the nation is set to slash this expenditure, narrowing the trade deficit while boosting export earnings.
Having completed successful preliminary test runs and produced steel billets, Disco has now transitioned to manufacturing ready-to-use finished steel products, including deformed bars in various sizes. The plant has a daily production capacity of 300 tonnes, with an ambitious annual production target of 600,000 tonnes.
"We are now producing 16mm, 20mm, and 25mm deformed bars, which are final products suitable for construction purposes. Currently, we are producing about 300 tonnes of deformed bars per day, with an annual target of 600,000 tonnes," said Disco's public relations manager, Mr. Joseph Shoko.
The development promises to meet local demand for steel, which has long been dependent on imports, and provides a more affordable and sustainable option for Zimbabwean consumers. Disco's steel products will not only cater to local infrastructure needs but also play a crucial role in advancing the country's industrialisation agenda.
"Zimbabwe has been importing nearly all its steel, but soon we will be substituting those imports with our local production. Dinson Steel's operations will contribute to increased steel production capacity in Zimbabwe, reducing reliance on imports and enhancing self-sufficiency," Mr. Shoko added.
In addition to addressing steel demand, the plant is already creating significant employment opportunities. About 2,000 jobs have been generated at the plant, with further growth expected as production ramps up. The facility's contribution extends beyond job creation, helping stimulate broader economic growth and boosting the manufacturing sector.
"The steel production facility is creating employment opportunities, stimulating economic growth, and contributing to the development of the manufacturing sector. Steel production will also support infrastructure projects, such as construction, transportation, and energy, driving economic progress," said Mr. Shoko.
The Manhize plant is one of Africa's largest integrated steelworks and is owned by Dinson Iron and Steel, a subsidiary of Tsingshan Holdings Group, a leading global stainless steel producer. Tsingshan also owns Dinson Colliery in Hwange and the Afrochine Smelting ferrochrome plant in Selous.
Mr. Shoko highlighted the plant's role in economic diversification, reducing Zimbabwe's dependence on traditional sectors such as agriculture and mining. He emphasized that local steel production will foster greater industrialisation, furthering the government's vision of economic transformation.
"We are working on initiatives that complement our steel production operations. We have established a 50-megawatt power plant to support production, and while we are not yet connected to the national grid, we plan to contribute excess power once we meet the necessary requirements," said Mr. Shoko.
As part of the company's commitment to sustainability, Disco also plans to develop a wind power station to complement its energy needs, with a site around the Manhize Range already surveyed.
"We have identified a suitable site for a wind power station, and the next step is securing funding," Mr. Shoko explained. Additionally, the company is undertaking reforestation efforts, having planted 5,000 trees in partnership with the Forestry Commission during National Tree Planting Day.
In anticipation of the plant's growing operations, Disco has also initiated upgrades on the 23km gravel road connecting the plant to the highway. The road project is expected to be completed in time for the plant's full commissioning in the first or second quarter of the year.
The Manhize steel project positions Zimbabwe as a potential global steel manufacturing hub, with projections indicating that the country could emerge as a key player in the iron and steel industry. What was once a dense forest has now transformed into a thriving industrial zone, with modern infrastructure rising from the wilderness.
A part of the mega-investment also includes plans for the creation of Manhize Town, a Smart City, and a science university, underscoring the transformative impact of the project.
President Emmerson Mnangagwa, who toured the factory in March 2024, praised the progress and expressed appreciation for the government's role in facilitating smooth investments. Company officials have committed to ensuring that local communities benefit from the project, with more than 3,000 direct jobs expected in the first phase. By the fourth phase of production, the plant could employ over 10,000 people.
The plant's output will gradually increase from 600,000 tonnes in the first phase to 5 million tonnes annually by the final phase. This growth will not only satisfy local demand but will also generate substantial foreign currency for Zimbabwe through exports.
Future products from the plant include pipes, bolts, nuts, slag, rolled tubes, fences, shafts, wires, and bars, among others.
This monumental investment marks a major leap forward in Zimbabwe's industrialisation journey, paving the way for a more self-sufficient and diversified economy.
The multi-million-dollar project, which reflects the government's pro-investment policies under the Second Republic, is expected to have far-reaching benefits for Zimbabwe's economy, particularly in the steel and manufacturing sectors.
Historically, Zimbabwe has spent around US$1 billion annually on steel imports. With the Disco plant now in full production, the nation is set to slash this expenditure, narrowing the trade deficit while boosting export earnings.
Having completed successful preliminary test runs and produced steel billets, Disco has now transitioned to manufacturing ready-to-use finished steel products, including deformed bars in various sizes. The plant has a daily production capacity of 300 tonnes, with an ambitious annual production target of 600,000 tonnes.
"We are now producing 16mm, 20mm, and 25mm deformed bars, which are final products suitable for construction purposes. Currently, we are producing about 300 tonnes of deformed bars per day, with an annual target of 600,000 tonnes," said Disco's public relations manager, Mr. Joseph Shoko.
The development promises to meet local demand for steel, which has long been dependent on imports, and provides a more affordable and sustainable option for Zimbabwean consumers. Disco's steel products will not only cater to local infrastructure needs but also play a crucial role in advancing the country's industrialisation agenda.
"Zimbabwe has been importing nearly all its steel, but soon we will be substituting those imports with our local production. Dinson Steel's operations will contribute to increased steel production capacity in Zimbabwe, reducing reliance on imports and enhancing self-sufficiency," Mr. Shoko added.
In addition to addressing steel demand, the plant is already creating significant employment opportunities. About 2,000 jobs have been generated at the plant, with further growth expected as production ramps up. The facility's contribution extends beyond job creation, helping stimulate broader economic growth and boosting the manufacturing sector.
"The steel production facility is creating employment opportunities, stimulating economic growth, and contributing to the development of the manufacturing sector. Steel production will also support infrastructure projects, such as construction, transportation, and energy, driving economic progress," said Mr. Shoko.
The Manhize plant is one of Africa's largest integrated steelworks and is owned by Dinson Iron and Steel, a subsidiary of Tsingshan Holdings Group, a leading global stainless steel producer. Tsingshan also owns Dinson Colliery in Hwange and the Afrochine Smelting ferrochrome plant in Selous.
"We are working on initiatives that complement our steel production operations. We have established a 50-megawatt power plant to support production, and while we are not yet connected to the national grid, we plan to contribute excess power once we meet the necessary requirements," said Mr. Shoko.
As part of the company's commitment to sustainability, Disco also plans to develop a wind power station to complement its energy needs, with a site around the Manhize Range already surveyed.
"We have identified a suitable site for a wind power station, and the next step is securing funding," Mr. Shoko explained. Additionally, the company is undertaking reforestation efforts, having planted 5,000 trees in partnership with the Forestry Commission during National Tree Planting Day.
In anticipation of the plant's growing operations, Disco has also initiated upgrades on the 23km gravel road connecting the plant to the highway. The road project is expected to be completed in time for the plant's full commissioning in the first or second quarter of the year.
The Manhize steel project positions Zimbabwe as a potential global steel manufacturing hub, with projections indicating that the country could emerge as a key player in the iron and steel industry. What was once a dense forest has now transformed into a thriving industrial zone, with modern infrastructure rising from the wilderness.
A part of the mega-investment also includes plans for the creation of Manhize Town, a Smart City, and a science university, underscoring the transformative impact of the project.
President Emmerson Mnangagwa, who toured the factory in March 2024, praised the progress and expressed appreciation for the government's role in facilitating smooth investments. Company officials have committed to ensuring that local communities benefit from the project, with more than 3,000 direct jobs expected in the first phase. By the fourth phase of production, the plant could employ over 10,000 people.
The plant's output will gradually increase from 600,000 tonnes in the first phase to 5 million tonnes annually by the final phase. This growth will not only satisfy local demand but will also generate substantial foreign currency for Zimbabwe through exports.
Future products from the plant include pipes, bolts, nuts, slag, rolled tubes, fences, shafts, wires, and bars, among others.
This monumental investment marks a major leap forward in Zimbabwe's industrialisation journey, paving the way for a more self-sufficient and diversified economy.
Source - The Chronicle
