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SADC SIW Behind Disco Awakening Zim Steel At 60% Capacity

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By Ross Moyo
The recent Southern African Development Community (SADC) Industrial Week and current in preparation of the SADC heads of State 17-19 August summit exposed Kwekwe’s Disco to supply the whole Sadc market.

Sadc opened up these new opportunities after DINSON Iron and Steel Company (Disco), which presently is operating at 60 percent capacity, is able to meet the 400 000 tonnes per annum required by the domestic market.

Wilfred Motsi, Disco Project Director said, while his organisation would focus on satisfying the local market first, the recently held Southern African Development Community Industrialisation Week (SIW) in the capital city saw the steel producer receiving vital inquiries from the Southern African Development Community region.

“At the moment, we have not started selling to the market; we are stockpiling and taking inquiry orders. Hopefully, by next month, we will start supplying the market.

“We are presently operating at 60 percent and going by our production target, we are very much able to gradually meet the demand from our markets — both locally and regionally.

“Currently, Zimbabwe is consuming about 400 000 tonnes and the recently held SIW helped us significantly. As you might be aware, during that event, we had a series of meetings with Southern African Development Community (SADC) people and we generated a lot of inquiries from the region,” he said.

Following the shut down of the Kwekwe, Redcliff-based steel manufacturer, Zimbabwe Iron and Steel Company (Zisco), once the largest integrated steel plant north of the Limpopo, in 2008, local companies have been importing steel and other related raw materials from the region and abroad, in countries that include China and India, most of which are sub standard compared to what Zisco used to manufacture.

Resultantly, Zimbabwe lost millions of foreign currency importing steel and related products.

Zisco produced over one million tonnes of steel per annum, employing more than 5 000 people directly, at its peak in the 90s.

Disco recently began production at its US$1,5 billion steelworks in Manhize, near Mvuma — will start supplying its products to the local and regional markets next month.

Disco is owned by China’s leading stainless steel producer, Tsingshan Holdings Group Limited, and has the biggest integrated steel plant in Africa.Tsingshan Holdings Group Limited’s two other local subsidiaries are Dinson Colliery and Afrochine Smelting.

Disco targets a production capacity of 600 000 tonnes per annum under the first phase, 1,2 million tonnes in the second phase and 3,2 million tonnes in the third phase, before subsequently reaching five million tonnes in the final phase.

The production of steel billets began this month, and the company also started manufacturing pig iron last month, producing 1 400 tonnes per day.

Ross Moyo

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