Zimbabwe's steel industry set for a significant revival

Zisco, Dinson partner for growth
Zimbabwe's steel industry is set for a significant revival as the Zimbabwe Iron and Steel Company (Zisco) collaborates with Dinson Iron & Steel Company to drive growth and development in the sector. The announcement was made by Industry and Commerce Minister Mangaliso Ndlovu during a Parliamentary session on Wednesday, highlighting a new chapter for Zimbabwe's iron and steel industry.

Ndlovu emphasized that the partnership between Zisco and Dinson offers a unique opportunity to build synergies, not only with the existing Zisco plant but also with other downstream industries such as Lancashire Steel. The minister believes this strategic collaboration will play a pivotal role in revitalizing the country's iron and steel sector, fostering job creation, and bolstering economic growth.

"The coming on board of Dinson Iron and Steel Company currently presents a unique opportunity to build synergies with the existing Zisco plant and other downstream industries such as Lancashire Steel, hence promoting the revival of the local iron and steel sector," Ndlovu said.

He further noted that the collaboration would lead to the development of complementary production lines, with companies signing a memorandum of understanding to avoid direct competition. Dinson currently produces pig iron and steel billets for export and is set to begin producing hot-rolled bars. However, they have agreed, in principle, to leave certain types of products to be produced by Zisco Steel, ensuring complementary roles rather than direct competition.

The partnership is expected to significantly impact Zimbabwe's industrial capacity, particularly in steel production, and create a host of employment opportunities. Ndlovu also provided an update on Zisco's ongoing efforts to revitalize its operations, including plans to mobilize resources for the revival of its limestone beneficiation into burnt lime. This lime is essential for removing impurities in steel production and is also a key ingredient in cement manufacturing.

Zisco is currently implementing a robust turnaround strategy, including the strategic partnership with Dinson, which aims to restore the capacity lost in the production of steel over the years. According to Ndlovu, the stripping of Zisco assets has been halted, and the company's board and management are now firmly in control of the operation at Zisco Steel.

"Our focus is to make sure that the capacity that was lost at Zisco Steel, which was the primary conversion of iron ore into steel, we have regained through Dinson," Ndlovu confirmed.

The minister's remarks were made in response to a question raised by Mbizo legislator Corban Madzivanyika, who asked about government plans to resuscitate Zisco Steel and Lancashire Steel in the Midlands region, both of which are critical to Zimbabwe's industrial base.

The revival of Zisco Steel, once a major player in the iron and steel sector, is expected to boost Zimbabwe's manufacturing output, contribute to infrastructure development, and create significant employment opportunities, giving the local economy a much-needed boost. The partnership with Dinson Iron & Steel Company is poised to play a key role in positioning Zimbabwe as a competitive force in the global steel industry.