Disco fabrication plant to start production in March
THE Dinson Iron and Steel Company (Disco) fabrication plant, with a projected capacity of 600 000 metric tons per year during the first phase, is expected to commence production between March and April with production targeting both local and export markets.
The project will drive massive beneficiation and value addition of steel and accelerate economic growth through exports and huge job opportunities along the value chain.
Disco, which is a subsidiary of Chinese iron and steel giant, Tsingshan Holdings is constructing a US$1,5 billion steel and iron plant in Manhize, approximately 200km south of Harare.
Responding to questions from Business Chronicle yesterday, Dinson project director Mr Wilfred Motsi said the company will be producing pig iron, steel billets, steel bars, wire, roof bolts and mill balls amongst other iron and steel products which will be passed through the value chain to the final user.
He said their targeted clients will be all steel users including retailers and distributors.
“The Manhize fabrication plant will commence production between March and April 2024 with a capacity of 600 000 metric tons per year during the first phase and targeting both local and the export market,” said Mr Motsi.
“The company will be working with other industry players in a win-win relationship. We produce billets and they further process to sections, angle, flat bars, bars and nails amongst others.”
The company expects to produce pig iron by the end of April, followed by steel billets in May and steel bars in October.
Preliminary projections indicate the company would likely scoop net revenues of up to US$10 million during the first phase and rise to US$4,25 billion under phase four of production.
Last week, Minister of Industry and Commerce, Dr Sithembiso Nyoni, led chief executive officers from mining companies, foundries, banks and the media to get the feel of implementation progress made on-site and the company expects to start production by the end of April this year.
Dr Nyoni said the giant steel plant would play a pivotal role in enhancing the production of iron ore, its processing into steel, and the subsequent manufacturing of various steel products.
This will see local foundry players benefiting through easy access of quality raw material, unlike now where they have to depend on scrap metal.
“By integrating these stages of the value chain, we are fostering a more self-reliant and sustainable steel industry. The impact of the plant on the economy cannot be overstated,” said the Minister.
“The growth and development of the steel industry has a multiplier effect on other sectors, such as construction, infrastructure development and manufacturing.” —chronicle
