STEEL producer Dinson Iron and Steel Company (Disco) plans to begin commercial steel production later this year or early 2025, with an ambitious target of 600 000 tonnes annually and projected revenue of US$1 billion.
Disco is one of four subsidiaries under Zhejiang Dinson Holding Co. Ltd (Dinson), whose parent company is the China-based steel and nickel producer Tsingshan Holding Group (Tsingshan).
Tsingshan, which operates globally, generated revenue of US$54 billion last year. The company has invested US$1 billion to develop the Disco steel-making plant at Manhize, near Mvuma.
During a tour of Disco’s steel plant last Friday, Dinson projects director Wilfred Motsi revealed that the company had commenced producing 1 400 tonnes of pig iron daily from the first phase of the steel plant.
This represents just 6% of the plant's total capacity, which is still under construction.
“We have also started a new line where we are also producing steel billets, but it was just a test run,” Motsi said.
“We have managed to produce just a few bars of the steel billets. But, in a week’s time, we will be starting full production of the steel billets.”
Pig iron is used to make steel. Steel billets are the primary raw material used in the production of various steel products.
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“In terms of tonnage per year, from the first phase of the steel plant, we are looking at 600 000 metric tonnes of carbon steel, like steel billets as we were saying,” Motsi said.
“Then, for revenue, it depends on whether we are selling that steel as billets or finished products. But we are just focusing on US$1 billion to start.
“If everything goes according to plan, we are looking at the end of this year, the beginning of next year. That is when we will start the full production at the plant.
“Already, as the holding company, we have pledged to the government of Zimbabwe that we are going to invest US$2 billion.”
He said the US$2 billion investment was across all the subsidiaries under Dinson, not just for the steel-making plant.
“For this one (the steel making plant), it was US$1,5 billion. So far, we have used about US$1 billion. Only about US$500 million is remaining,” Motsi said.
“In terms of capex, we are looking at US$500 000 for next year.”
He said the major challenge facing the company was water supply, which they are working to resolve through discussions with the Zimbabwe National Water Authority.
