Dinson Steel Plant in Zimbabwe Set to Begin Production in June 2024

The Dinson Iron and Steel Company's $1.5 billion steel plant in Manhize, Zimbabwe is set to commence test runs in May 2024 and full production in June, aiming to produce 600,000 tonnes of steel in its initial phase, with plans for expansion to 5 million tonnes annually. The plant, a subsidiary of China's Tsingshan Holdings Limited, is expected to revitalize Zimbabwe's engineering, iron, and steel industries by providing a reliable domestic source of raw materials, leading to potential job creation and economic growth. This description focuses on the primary topic of the steel plant's operationalization, the main entities involved (Dinson Iron and Steel Company and Tsingshan Holdings Limited), the context of Zimbabwe's economy, and the significant actions and implications of the plant's production. The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as the plant's location, production capacity, and expected impact on the economy.

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Bijay Laxmi
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Dinson Steel Plant in Zimbabwe Set to Begin Production in June 2024

Dinson Steel Plant in Zimbabwe Set to Begin Production in June 2024

The Dinson Iron and Steel Company's $1.5 billion steel plant in Manhize, Zimbabwe is gearing up to start test runs in May 2024, with full production expected to commence in June. The plant, a subsidiary of China's Tsingshan Holdings Limited, aims to produce 600,000 tonnes of steel in its initial phase.

According to project director Wilfred Motsi, "Production is planned to commence in June as construction of the plant has been completed and the electricity transmission line from Sherwood in Kwekwe to Manhize has been completed. All things being equal, we expect a test run to be conducted anytime this month before the first production begins in June." The plant's output is set to increase to 1.2 million tonnes in its second phase, 3.2 million tonnes in the third phase, and ultimately reach five million tonnes annually in the final phase.

Why this matters: The steel plant's operationalization is expected to have a significant impact on Zimbabwe's economy, particularly in the engineering, iron, and steel sector, which has been struggling with raw material shortages and depressed production. This investment could also have a ripple effect on other industries that rely on steel, leading to potential job creation and economic growth.

The steel plant's operationalization is expected to significantly impact Zimbabwe's engineering, iron, and steel sector, which has been grappling with raw material shortages and depressed production. Dosman Mangisi, chief operating officer of the Zimbabwe Institute of Foundries (ZIF), stated, "The commencement of operations at the steel plant will definitely yield a major impact and change to the local industry." The plant's output will provide easily accessible and competitive raw materials to companies in these sectors.

Dinson Iron and Steel Company is one of three local subsidiaries of Tsingshan Holdings Limited in Zimbabwe. The company's other two subsidiaries are Afrochine Smelting in Selous, Mashonaland West Province, and Dinson Colliery in Hwange, Matabeleland North Province.

The Dinson steel plant's imminent opening marks a significant milestone for Zimbabwe's industrial sector. With an initial production capacity of 600,000 tonnes per year and plans for substantial expansion, the plant is poised to revitalize the country's engineering, iron, and steel industries by providing a reliable domestic source of raw materials. As the first phase of production begins in June 2024, the impact of this $1.5 billion investment will start to be felt across Zimbabwe's economy.

Key Takeaways

  • Dinson Iron and Steel Company's $1.5 billion plant in Zimbabwe to start test runs in May 2024.
  • Initial production capacity: 600,000 tonnes of steel per year, increasing to 5 million tonnes in final phase.
  • Plant's operationalization to have significant impact on Zimbabwe's engineering, iron, and steel sector.
  • Output to provide easily accessible and competitive raw materials to local companies.
  • Plant's opening marks a significant milestone for Zimbabwe's industrial sector, expected to create jobs and drive growth.