Chinese manufacturing firm Tsingshan Holding Group has commenced operations at its $1 billion steel production plant in central Zimbabwe, Reuters has reported.
Operated by Tsingshan Holding Group’s subsidiary, Dinson Iron and Steel Company, the facility will produce 600,000 metric tons of carbon steel per annum during the first phase. Production will be increased to 1.2 million metric tons and up to 5 million metric tons in the final phase.
“We have started to produce pig iron, which is a raw material used for the production of steel. By July, that’s when we will start to produce the actual carbon steel,” stated project director Wilfred Motsi.
The steel production facility is powered by a 50 MW thermal power plant, generating 20% of the facility’s electricity needs leveraging gas produced by an onsite furnace. A solar plant will be built to enhance energy resilience and supply for the plant.
The facility forms efforts to retain Zimbabwe as one of the industrial hubs in southern Africa, according to Motsi.
