New ZimSteel on path to recovery, says government

New ZimSteel on path to recovery, says government
Published: 20 March 2014
The Zimbabwe government on Wednesday called for patience as modalities for re-opening of the defunct Kwekwe based steelmaker, New Zim Steel (formerly Ziscosteel) are being worked out.

Deputy Industry and Commerce Minister Chiratidzo Mabuwa told Parliament the Government was still to clear some hurdles to ensure the company re-opened.

The re-opening of New Zim Steel, since Indian conglomerate Essar Holdings bought into the company over two years ago, has remained a matter of false starts.

"It is a slow process. We call for patience but the Ziscosteel workers and management are abreast of what is happening," Mabuwa told legislators during a question and answer session.

She said Industry and Commerce Minister Mike Bimha met with management and workers at the company last week to update them on the situation.

Mabuwa said New Zim Steel had not totally shut down but was involved in scaled down activities generating some income. The income was however not enough for the company to pay its workers, she said.

"As it is now, the company is making hundreds of thousands of dollars and recurrent expenditure requires millions," she said without specifying the income generating activities that the company was involved in.

Essar Africa Holdings acquired a controlling stake in Ziscosteel at a cost of $750 million in a deal that was largely anticipated to result in the immediate re-opening of the steel maker.

But squabbles on mining rights and other issues that have been kept private have resulted in the firm which employs over 3 000 workers to continue tottering at the expense of the economy and workers.

- New Ziana
Tags: Ziscosteel,

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