SteelMakers to Take Steel Production to New Heights with Rolling Mill Plant in Masvingo

In November this year, Masvingo Province is expected to commission a new and third major steel works after SteelMakers Limited secured US$160 million in funding for construction, set-up, and installation of an integrated steel plant. This plant will have the capacity to produce 500,000 tonnes of merchant mill rolled products yearly, helping to further add value and benefit from Zimbabwe's natural resources. The investment portfolio was presented by President Mnangagwa during the Africa Investment Forum 2022 in Abidjan, Cote d'Ivoire last year. The projects are said to bring a combined total of $265,400,000. Two other steel plants have already announced their plans to invest and join the development: one being the Dinson plant in Manhize and another being the reconstruction of ZiscoSteel works in Redcliff with updated technology.

SteelMakers, a Steel production project in Masvingo, Zimbabwe is pushing the nation rapidly forward as it strives to reach an upper middle-class income economy by 2030. This ambitious endeavor has been allocated US$160 million to see through its two-year expansion plan. The first phase of the project involves investing US$47 million to initially produce 200,000 tonnes of Steel each year before further expansion will yield 300,000 tonnes of Steel and bring the total yearly output up to 500,000 tonnes. Yesterday, Mr. Lewis Karowangoma, head of finance at SteelMakers spoke on the great progress they have made with unlocking funds for this exciting venture.

As Zimbabwe moves closer towards achieving its 2030 goal set by its National Development Strategy 1, SteelMakers stands tall as a sign of what is possible when ambition and effort combine.

"Since the investment forum, there has been progress in terms of finalizing that facility, the pledges that were done, so discussions are at an advanced stage for us to have access to the funding. On the ground the work is continuing. The civil works commenced at the new project last year," stated Mr. Karowangoma.

"The first phase is progressing well. We are hoping that phase one will be commissioned in November this year and thereafter we start working on the second phase."

"So, this investor he was with us in the beginning but of course we have got an additional interest on the second phase. I am not at liberty to disclose now due to issues of confidentiality. All the investors that were there and expressed interest are still very much interested and we are at an advanced stage in terms of our discussions," he stated.

"In about two to three months we should have concluded. We have about 800 employees and we are looking at increasing to about 2,000 after the completion of the second phase which should be 18 months from the first phase, which is end of 2025."

Mr. Karowangoma revealed that SteelMakers is a fully integrated organization from "ore to end," retaining more than 300 percent of its value chain in the country. He added that, like any other company in the nation, the firm is facing standard challenges including electricity and currency volatility, but they are engaging with authorities to address these obstacles.

"The manufacturing process entails the conversion of natural resources into finished products. We mine coal in Chiredzi and iron ore in Masvingo. Coal and iron ore are key components into the manufacturing of sponge iron, a key input into the process of making steel. Sponge iron is then further processed to produce various products of steel for both the local industry and export. We are proud to have substituted steel imports by taking full advantage of our resources. Our philosophy is to produce in Africa for Africa," he stated.

SteelMakers Limited has operated in East Africa for more than 70 years, and it is now bringing its extensive industry knowledge and expertise to Zimbabwe's steel industry. President Mnangagwa recently encouraged potential investors to team up with SteelMakers Limited if they wish to see a return on their investments.

"Those who want to make money go to SteelMakers. You will make money. Just like all other developing countries, we have been constructing railway lines, dams, roads, houses, and airports in all these sectors and the market assessment is huge," stated President Mnangagwa.

SteelMakers, a subsidiary of SIMBI, is set to open a rolling mill plant in the Masvingo industrial area. The new facility will take Sponge Iron produced by SIMBI and use it as a raw material to make steel. This will add value to the existing 36,000 tonnes of steel produced annually by SteelMakers' plant in Redcliff from the current Sponge Iron shipped from SIMBI.