Disco to Begin Steel Bar Production in 2025 as Manhize Plant Ramps Up
Dinson Iron and Steel Company (Disco)’s US$1.5 billion steel plant in Manhize is set to begin manufacturing steel bars by April 2025, marking a significant development that will expand the plant’s product range and boost Zimbabwe’s industrial output, Mining Zimbabwe reports.
By Rudairo Mapuranga
The company, currently operating at 60% of its capacity, aims to increase production to 75% by the second quarter of next year. The introduction of steel bars is a key driver of that growth.
The plant, located between Chivhu and Mvuma on the border of Midlands and Mashonaland East provinces, began production in July this year and is already producing pig iron and steel billets.
According to Dinson’s projects director, Mr Wilfred Motsi, the company’s move to start manufacturing steel bars marks a new operational phase, significantly boosting the plant’s capacity utilization and job creation.
“Currently, we are operating at 60% capacity utilization, and we expect to reach 75% in the second quarter of next year when we introduce steel bars to our product range.
“Employment figures, as a result of the steel bars we will be producing, will rise to 2,700,” Motsi said.
The introduction of steel bars is expected to create 500 additional jobs in the second quarter of 2025. The Manhize plant, which currently employs 2,200 workers, is projected to employ 10,000 people directly by the time it reaches its final production phase, making it the largest steel plant in Africa.
Dinson is one of three local subsidiaries of China’s Tsingshan Holdings, a global giant in the steel industry. The other two subsidiaries operating in Zimbabwe are Afrochine Smelting in Selous, Mashonaland West Province, and Dinson Colliery in Hwange, Matabeleland North Province. Together, these operations form part of a broader strategy to revitalize Zimbabwe’s steel industry and reduce the country’s reliance on imports.
When fully operational, the Manhize steel plant is expected to produce 600,000 tonnes of products annually in its first phase, with production rising to 1.2 million tonnes in the second phase. By the third phase, output will increase to 3.2 million tonnes, ultimately reaching five million tonnes at full capacity. These products will serve both local and international markets, with exports to regions such as Asia and Europe expected to generate significant foreign currency earnings for Zimbabwe.
“So far, we haven’t started exporting, but we are producing for the local market,” Mr Motsi explained. “As for the tonnage we are producing, I don’t have the figures offhand, but we have started selling, and our sales figures so far have been promising.”
To support the plant’s growing energy needs, Dinson has launched a 50-megawatt power plant, with plans to increase its capacity to 500MW as the project scales up. The 50MW plant will help the company achieve energy self-sufficiency, reducing its dependence on the national grid. The current plant consumes 28MW of power, with the excess capacity set to be synchronized with the national grid, further contributing to the country’s energy security.
The Manhize steel project is seen as a major step in Zimbabwe’s efforts to industrialize and restore its steel production capabilities following the closure of the Redcliff-based Zimbabwe Iron and Steel Company (Zisco) in 2008. Once one of the largest integrated steel plants in Africa, Zisco’s collapse left Zimbabwe dependent on steel imports from countries such as China and India. Dinson’s project, forecasted to generate revenues of up to US$4.5 billion annually in its final phase, is expected to transform the country’s steel industry and reduce the need for imports.
As Dinson continues to expand its operations, the company is poised to become a key player in the global steel market, positioning Zimbabwe as a hub for steel production in Africa.