AVM Africa Private Limited wants Disco partnership for steel

AVM’s intention comes at a time when it has a signed agreement with the Belarusian automobile maker, Minsk Automobile Plant, that will allow it to assemble Belarusian buses locally.
BUS and truck manufacturer, AVM Africa Private Limited (AVM), wants to work with steel producer Dinson Iron and Steel Company (Disco) to ramp up its bus production capabilities.

AVM’s intention comes at a time when it has a signed agreement with the Belarusian automobile maker, Minsk Automobile Plant, that will allow it to assemble Belarusian buses locally.

AVM will source the steel needed to manufacture its buses from Disco which is set to become the largest producer of the iron and carbon alloy.

Disco is set to finish constructing the first phase of its steel plant allowing it to commercially manufacture the iron and carbon alloy either by year end or in early 2025. The plant is located in Manhidze, at the junction of the Midlands, Mashonaland East and Mashonaland West provinces.

“We look forward to increasing the local bus manufacturing activities in Zimbabwe initially, for the region and the African continent as a whole, working with the new Dinson Steel Plant in Manhidze,” AVM managing director Jacob Kupa told NewsDay Business.

“Ninety percent of materials on a bus are steel. The steel plant will boost the production of buses and accessories. All bus steel fabrication will be done on-site.”

He said this would boost efficiency and reduce costs.

Kupa added that the strategic move was expected to increase AVM’s bus manufacturing capacity as the company seeks to capitalise on the growing demand for reliable and affordable transportation solutions throughout Africa.

“We want to manufacture buses in Zimbabwe for the local market, regional and eventually the whole African continent. Belarus will provide complete knock down kits on the driveline mainly and for some bus products, AVM Africa will provide all bus bodies,” Kupa said.

“We are going to implement technology transfer programmes through training of locals both in Belarus and Zimbabwe spares back up services.”

The driveline, also known as the drivetrain, is the system in a vehicle that transfers power from the engine to the wheels, including components like the transmission, driveshaft, differential and axles.

Kupa said Zimbabwe is well-positioned to capitalise on the African Continental Free Trade Area (AfCFTA), as it prepared to redesign its factory layout.

“Production capacities are set to increase considerably to more than 1 000 units annually. The AFCFTA) is advocating a 50/50 in the automotive industry. AVM Africa stands a good chance since already our buses are 60% local content and 40% import,” he said.

“The company is finalising plans to redesign its factory layout to accommodate the increased production from the joint venture. The joint venture is expected to be fully operational in a month or two.”-newsday