Published: 13 March 2014

Tsingshan Iron and Steel Group of China is planning to establish an integrated stainless steel manufacturing plant in Zimbabwe, which will incentivise the company's involvement in infrastructure refurbishment in the country's energy and railway sectors.

Company director Benson Xu however told Parliamentarians this afternoon that his company wants the Government to first guarantee availability of the requisite raw minerals.

"We would want the Government of Zimbabwe to guarantee the availability of all the mineral resources needed for stainless steel to invest. Tsingshan Iron and Steel Group only need enough mineral resources to justify injection of capital in the setting up of the proposed steel manufacturing plant," said Benson.

Benson said his company will invest in the country's electricity and railway sector as associated investments to the setting up of the stainless steel plant.

"The biggest challenge to Zimbabwe's economic revival is lack of energy. Tsingshan Iron and Steel is fully aware of this and we will build a thermal power plant to ensure that stainless steel plant has a reliable and stable supply of electricity. The excess power will be directed to the national grid for the benefit of this nation," he said.

"In addition to general infrastructure needs Tsingshan Iron and Steel is keen to take the lead in the refurbishment of the dilapidated infrastructure of the national railway network. As you know the construction of a railway needs huge tonnage of steel, which Tsingshan can provide locally if we have the plant here."

Tsinghan - the second largest stainless steel producer in China - has already set up a subsidiary in Zimbabwe, Afrochine Smelting, which has invested $25 million in a chrome smelter in Selous.
- BH24

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