Dinson Iron and Steel Company has successfully completed the construction of an 88 kilovolt transmission line from the Sherwood substation in Kwekwe to Manhize.
This development enables the company, which requires 100MW for the first phase of its projects, to commence production.
As part of the US$1.5 billion steel plant project, Dinson plans to build a 330kV connection from Sherwood to the project site to enhance electricity supply to other industries in Manhize and the surrounding areas.
Recently, the plant, which is set to become Africa’s largest integrated steelworks, conducted successful test runs. These tests were performed on five key components of the plant, all of which were found to be in optimal condition and ready for production, scheduled to start next month.
In a recent interview, Dinson Project Director Mr. Wilfred Motsi stated, “We have completed constructing an 88kV transmission line which will enable us to start production under the first phase. We are also planning to construct a 330kV power line from Sherwood to Manhize to meet our electricity requirements.”
Dinson Iron and Steel Company is one of three local subsidiaries of China’s Tsingshan Holdings Limited. The other subsidiaries are Afrochine Smelting in Selous, Mashonaland West Province, and Dinson Colliery in Hwange, Matabeleland North Province.
According to a recent Cabinet report, the Dinson steel plant is now 95 percent complete. The raw materials complex and the sintering plant are fully completed, the blast furnace is 90 percent complete, the steel mill is 60 percent complete, and the coke oven battery is 90 percent complete.
Dinson is expected to produce 600,000 tonnes of products in the first phase, increasing to 1.2 million tonnes in the second phase. Initially, the company will produce pig iron, followed by steel billets and steel bars by the end of the year. Production is anticipated to rise to 3.2 million tonnes in the third phase and eventually reach five million tonnes annually in the final phase, requiring at least 500MW to power the plant. The facility is projected to supply a wide range of steel products to the local market and directly employ over 10,000 people.
Meanwhile, Zimbabwe Institute of Foundries (ZIF) Chief Operating Officer Mr. Dosman Mangisi has expressed enthusiasm for Dinson’s first steel production.
“The commencement of operations at the steel plant will have a significant impact on the local industry, which is currently struggling with a shortage of raw materials, leading to reduced production in the engineering, iron and steel sectors, including foundries,” Mangisi said.
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He added, “The proclamation that the Manhize steel plant’s blast furnace is complete is a positive development for the foundry sector, and we are prepared to leverage the opportunities presented by the operationalization of the plant. The start of production at Dinson’s steel plant will improve production levels across all sectors, particularly in engineering and iron and steel, by providing easier and more competitive access to raw materials compared to the current situation where most players import these materials.”
Before the closure of Zimbabwe’s largest integrated steel plant, Zisco, in 2008 due to hyperinflation, local industries had access to cheaper raw materials. At its peak in the 1990s, Zisco produced over one million tonnes of steel annually and employed more than 5,000 people directly.
Mr. Mangisi also mentioned that his organization, which has over 200 members, expects rapid membership growth due to the commencement of production at Dinson.
“We are also preparing for a significant increase in membership driven by new investments in the sector attracted by the Dinson project,” he said.
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