By Martin Chemhere
Disco Zimbabwe, a subsidiary of the Chinese-owned Tsingshan Holding Group, has announced the commencement of reinforced bar production at its Manhize steel plant. This marks a significant step in the company’s expansion plans, which aim to produce 600,000 tonnes of steel products in the first phase.
Disco Zimbabwe began operations in June of last year, initially focusing on the production of pig iron. The addition of reinforced bars to its product line demonstrates the company’s commitment to diversifying its offerings and catering to the growing construction industry in Zimbabwe and the region.
Reinforced bars, also known as rebar, are essential components in concrete structures, providing strength and durability. The production of these bars locally is expected to reduce Zimbabwe’s reliance on imports and stimulate the growth of downstream industries. Zimbabwe currently spends approximately half a billion dollars annually importing steel, primarily from South Africa, India, and China. However, the newly established steel plant is poised to significantly reduce these imports.
The Manhize steel plant, a US$1 billion investment, is one of the largest in the region and is expected to create thousands of jobs. The company has stated its commitment to employing local people and contributing to the development of the surrounding community.
In addition to reinforced bars, Disco Zimbabwe plans to produce a range of other steel products, including billets, wire rods, and structural steel. The company’s long-term goal is to become a leading steel producer in Africa, supplying high-quality products to both domestic and international markets.
The expansion of Disco Zimbabwe’s production capacity is a positive development for the Zimbabwean economy, which has been struggling in recent years. The increased availability of locally produced steel products is expected to boost infrastructure development and support the growth of the construction sector.
The company’s success will depend on a number of factors, including access to reliable energy supplies, stable commodity prices, and a supportive regulatory environment. However, the investment by Disco Zimbabwe is a clear indication of the potential for growth in the Zimbabwean steel industry.
The commencement of reinforced bar production is a significant milestone for Disco Zimbabwe and for the Zimbabwean economy as a whole. It demonstrates the potential for value addition in the mining sector and the creation of new jobs and opportunities. As the company continues to expand its operations, it is poised to play a major role in the development of Zimbabwe’s infrastructure and economy.
