Chinese nickel giant Tsingshan Holding Group will inject $800 million into expanding its steel plant in central Zimbabwe through its subsidiary Dinson Iron and Steel Company.
Tsingshan, one of the world’s largest nickel producers, has already built a strong presence in Zimbabwe with operations in ferrochrome, coking coal, and lithium, according to Reuters.
Project director Wilfred Motsi said the new investment will cover construction of a blast furnace, centring, rolling, and steel plants, along with supporting infrastructure.
He noted the expansion could lift carbon steel output from 600,000 metric tonnes a year to 1.2 million tonnes.
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The first phase of the project included a 50-megawatt thermal power plant to reduce dependence on Zimbabwe’s fragile electricity grid.
Management added that additional power would also be sourced from furnace gas, meeting around 20% of the facility’s needs.
Zimbabwe’s Information Minister Jenfan Muswere said the expansion would help trim the country’s annual steel import bill.
The government is betting on the project to revive the nation’s industrial backbone and position Zimbabwe as host to Africa’s largest steel plant, a development some experts believe could reshape the economy.
Zimbabwe has long viewed steel production as critical to reviving manufacturing and boosting infrastructure, especially after the collapse of its largest steelworks under former President Robert Mugabe.
That plant shut down in 2008 following years of mismanagement, underinvestment, and economic decline, forcing the country to spend more than $1 billion each year on steel imports.
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