Rains defer Disco’s production debut

26 Mar, 2023 - 00:03 0 Views
Rains defer Disco’s production debut

The Sunday Mail

Oliver Kazunga

Senior Business Reporter

DINSON Iron and Steel Company (Disco), which is constructing a US$1,5 billion steel plant in Mvuma, has moved the steelworks’ first production deadline to November due to delays caused by incessant rains.

The Meteorological Department Services predicted that Zimbabwe will receive normal to above-normal rains in the 2022/2023 rainy season and the country has in the past three weeks received relentless rainfall, which, in some areas, has affected crops in the fields.

Construction of Africa’s largest integrated steel plant began last year, with the first production deadline initially scheduled for August this year. In an interview, Disco project director Mr Wilfred Motsi said despite the recent rain disturbances, construction at the site is progressing well, with the steelworks now 55 percent complete.

“In terms of completion, the project is now 55 percent complete, with all the super infrastructure of the project almost complete and the mechanical works are underway, fitting the required machinery and mounting them on the super infrastructure. Our initial production deadline is no longer August because of the delays that have been induced by the incessant rains that affected our operations on the project site in recent weeks. But we’ll be accelerating construction now given that the rains have subsided and we are now targeting November as the first production deadline,” he said.

Disco is one of the three subsidiaries in Zimbabwe of China’s largest stainless steel producer, Tsingshan Holding Group Limited, and under the first phase of the Manhize steelworks, the project will be processing 600 000 tonnes of carbon steel for local and export markets.

In tandem with the objectives of the National Development Strategy 1 (NDS 1) and Vision 2030, where the Government seeks to achieve an upper middle-income economy, the establishment of the steel plant in Manhize will see a new town cropping up in Chivhu.

“We have also finished constructing a bridge over Munyati River linking us with the rest of Mvuma and I think anytime soon, we will be commissioning the bridge,” said Mr Motsi.

As part of infrastructure development, Disco also intends to build a 1 000-kilometre railway network to be used for moving bulk iron and steel products, among other goods, destined for the export market.

Since the closure of Zimbabwe’s largest steel plant, Zisco, in 2008, the country is spending US$400 million annually importing iron and steel products. However, it is envisaged that the coming on board of the Manhize steelworks will cut down steel imports by 90 percent.

Economic commentator Ms Wendy Mpofu said the development of the steel plant in Mvuma is a significant milestone for Zimbabwe and construction of the project should be implemented with speed for the country to cut down its import bill.

“It is unfortunate to hear that construction of the steel plant in Manhize has been delayed due to the recent incessant rains, forcing Disco to shift the initial production deadline to November from August this year. However, despite such delays, it is imperative for Disco to now move with speed to ensure the project gets completed within the new production deadline. This will be a significant milestone for the country as it would see the country cutting down on steel imports,” she said.

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