1 000 haulage trucks to ferry Disco’s US$100m equipment Steel
PART of the equipment belonging to Dinson Iron and Steel Company (Disco) worth US$100 million for the large steel mills in Mvuma, will need 1 000 loads in heavy haulage trucks to bring it to Zimbabwe from Durban, South Africa.
The first batch of the equipment and machinery comprising general blast furnace components, is already in Durban and is expected to arrive at the steel plant site in Mvuma at the end of the month.
Disco, which is constructing a US$1 billion steel manufacturing plant in Manhize, is a Zimbabwe subsidiary of top Chinese steel producer, Tsingshan Holdings.
The firm is building arguably Africa’s largest integrated steel manufacturing plant in Mvuma, with the first blast furnace for the project expected to be switched on in September next year.
“The first batch of equipment for the steel plant comprising general blast furnace components has arrived in Durban.
“This is part of the US$100 million worth of the steel plant’s equipment and machinery that will be brought into the country after docking in South Africa by 1 000 haulage trucks,” a company representative said yesterday.
The integrated steel investment will comprise a carbon and steel plant, an iron ore mine and a ferrochrome plant, which is expected to produce 1,2 million tonnes of iron and steel annually.
It is expected to create 10 000 direct jobs.
Presently, Disco employs more than 300 people and the firm is also constructing its own 500MW coal-fired thermal power station in Hwange and has signed deals with Zesa so that the power from this station can be transmitted across Zimbabwe, with a new 100km main grid link being built across the Midlands.
It is hoped that the steel plant will create over 50 000 jobs across the iron and steel value chain.
Recently, Disco and Zesa Holdings’ electricity transmission and distribution company, ZETDC, entered into a joint venture agreement for the construction of a 400kV transmission power line from Sherwood near Kwekwe to the steel plant in Mvuma to fill a missing link in the backbone grid.
Disco is also in talks with the National Railways of Zimbabwe for the construction of a 50km railway line from Mvuma to the steel plant.
“Part of the plan is to bring infrastructural development by building a new bridge over Munyati River as well as widening a 27km stretch of the road from the Harare-Masvingo highway to the plant. It will be widened by about 20 metres,” the company said.
In addition, Disco has also entered into a public-private partnership with the Zimbabwe National Water Authority to build a dam that will provide water to the steel plant and the new town cropping up around it.
The Government has since granted the investment a national project status, which typically allows an investor of a high value project to bring in equipment duty free for five years, among other benefits.
Disco has already applied for Special Economic Zone status for the integrated iron and
steel industrial park.-The Herald
