By Leopold Munhende recently in Manhidze
DINSON Iron and Steel Company (DISCO) Chief Executive Officer (CEO) Takana Xu has urged local industry not to import steel but rather take advantage of their presence.
Tanaka, who spoke to journalists during a media tour recently, said the Ministry of Industry had shared with them that millions, that could be kept locally, were being used to import steel each year.
DISCO, valued at over US$1.5 billion, is one of Africa’s biggest steel manufacturing plants which is being constructed by global industry leader Tsingshan Holding Group of China. Production has already started in earnest with pig iron and steel billets now available.
“The Ministry of Industry gave us a figure that last year and the past few years we had spent so many US dollars to import steel which I think has a very significant impact on import substitution,” said Tanaka.
“We are producing quality steel locally. Steel is now available here, do not import. There is no need to import that which is produced locally.
“What we are producing is proper steel, not recycled stuff from Mbare. It can sustain any mega project or high-rise building.”
DISCO, which seats on the site of a proposed smart city in Mvuma, also owns DINSON Colliery in Hwange and a ferrochrome plant in Selous, Afrochine Smelting.
During the same tour, Tanaka indicated his willingness to work with small to medium chrome miners and suppliers whom he said were key to their operations.
The miners were represented by officials from Masvingo, Mashonaland East, Mashonaland West, Midlands and Harare provinces of the Zimbabwe Miners Federation (ZMF).
“For small scale chrome miners, DINSON has conceded to becoming off takers of our product and to also supply our members with requisite machinery,” said ZMF president Henrietta Rushwaya.
“This will ensure that they get paid immediately after producing, they will no longer go through the rigorous exercise of exporting. It is a game changer for ZMF members predominantly in the chrome and lithium business.
“This is central to Zimbabwe’s economy, it is probably one of the biggest companies that we currently have in Zimbabwe, viable and producing steel that can be exported to the rest of the world.”
The Manhidze plant has already reached 90% capitalisation and expects to produce five million tonnes at its final stage