mbulelo smpofu
Patrick Chitumba, Patrick.chitumba@chronicle.co.zw
CHINA-BASED Tsingshan Holding Group has reaffirmed its confidence in investing in Zimbabwe, citing the country’s secure and attractive potential.
The group recently established the Dinson Iron and Steel Company (Disco) Manhize plant, one of Africa’s largest steelworks, for US$1,5 billion in Mvuma.
This project has positioned Zimbabwe as a significant global player in steel manufacturing, with projections indicating that it will become a future powerhouse in the industry. Moreover, Tsingshan owns the Dinson Colliery in Hwange, Matabeleland North and Afrochine Smelting Limited, a ferrochrome plant in Selous.
The successful implementation of the Manhize Steel Project highlights the Second Republic’s commitment to achieving a middle-income economy by 2030.
Speaking at Kwekwe’s Iron and Steel Indaba, which was inaugurated by President Mnangagwa, Zhejiang Dinson Holding Company chairman, Mr Chen Shangsong, stated that Zimbabwe is experiencing a resurgence in the iron and steel industry.
“Today, it is a new dawn, you can see for yourself that the vision has now turned into reality in 2024 with the resurgence of the iron and steel industry in Zimbabwe, thanks to your visionary leadership that has created a favourable investment climate under the Second Republic’s mantra ‘Zimbabwe is open for business’,”he said.
Mr Shangsong said the steel industry plays a critical role in any country’s economy.
“This is the reason why Tsingshan was motivated to invest in setting up the integrated steel plant in Manhize,” he said.
Mr Shangsong said the investment by Tsingshang in the county is a testimony of the excellent bilateral ties between Zimbabwe and China.
He said Tsingshan Group benefitted immensely from the bilateral ties.
“In setting up these projects in Zimbabwe, Tsingshan Group has been motivated by the desire to maximise mineral value in the country of operation,” said Mr Shangsong.
He said the value addition and beneficiation thrust they have adopted is further consolidated by the setting up of the Manhize Steel plant.
“Dinson, as a leading steel producer in Zimbabwe, plays a significant role in supporting the growth of various downstream industries, including infrastructure development, automotive industry, rail, engineering, fabrication and agricultural industries,” said Mr Shangsong.
He said Tsingshan Group has confidence in Zimbabwe as a safe investment destination.
“This Manhize Steel Project is one of the clear testimonies that the leadership of the Second Republic under the stewardship of His Excellency, President Mnangagwa is on course to achieve the country’s vision of becoming an upper middle-income economy by the year 2030, said Mr Shangsong.
He said steel production is a major contributor to greenhouse gas emissions, accounting for approximately seven percent of global emissions.
“As a good corporate citizen in Zimbabwe, we always uphold a high sense of social responsibility towards our community. In Manhize, we have managed to resettle displaced communities and built them new houses and drilled boreholes for them,” he said.
“In addition, we have also constructed a new bridge to make our steel plant more accessible and widened the road linking Manhize and the Masvingo highway. We are committed to supporting the community, not only by offering employment but also by lifting their living conditions.”
Mr Shangsong said the iron and steel industry is highly dependent on global demand and supply and fluctuations in prices have far-reaching consequences.
“It affects not only the profitability of iron and steel producers but also the livelihoods of millions of people employed in the industry. Sometimes the global steel market is characterised by unfair trade practices, such as dumping and subsidies, which distort the market and undermine the competitiveness of domestic steel producers,” he said.
