ZISCO revival on course, Dr Nzenza

Industry and Commerce Minister, Dr Sekai Nzenza, is bullish on the revival of Ziscosteel, saying SMS GmbH, the Germany-based company, which intends to partner Kuvimba Mining House, has a long track record in iron and steel around the world.

KMH, jointly owned by Government with 60 percent shareholding and private investors, won the bid to revive state-owned ZISCO, which closed in 2008 due to financial challenges.

There are still some lingering doubts about the revival of ZISCO, which is 92 percent owned by the Government, after several attempts to revive the company in the past 15 years failed.

“I am confident,” Dr Nzenza said. “SMS is the largest steel manufacturer in the world.

“The President (Mnangagwa) has given my ministry a mandate to revive Ziscosteel and produce steel locally (and) reduce the import bill. The plant at Ziscosteel is old.

“We have the raw materials (iron ore) and SMS has the technology, expertise and capacity to train Zimbabweans to produce steel for local consumption and export.”

Kuvimba, which owns various mining assets in the country, has a management contract to bring a turnaround of ZISCO, once Africa’s largest integrated steelworks, she said.

“SMS team visited Ziscosteel and discussions on a partnership engagement have commenced,” said Dr Nzenza. SMS is a family business with a history of more than 150 years as a technology leader in the steel industry. It has nearly 100 plants around the world – four in Africa and employees around 14 000 people. In El Marakb, Egypt and Senegal the company operate a mini mill and rolling mill for rebars and wire rod with respective of capacities 400 000 and 350 000 tonnes per annum.

In Oran, Algeria, SMS operates a hot and cold direct reduced iron plant with annual capacity of 2,5 million tonnes and another rolling mill for rebars, profile and wire rod in Prometal, Cameroon with annual capacity of 160 000 tonnes per year.-ebusinessweekly