Published: 2 hours ago

Chinese nickel producer Tsingshan Holding Group will invest $800 million in expanding its steel plant in central Zimbabwe through its unit Dinson Iron and Steel Company.

Tsingshan, among the world's largest nickel producers, has already established a strong foothold in Zimbabwe with operations in ferrochrome, coking coal, and lithium, according to Reuters.

Project director Wilfred Motsi said the fresh investment will fund construction of a blast furnace, centring, rolling, and steel plants, as well as supporting infrastructure.

He added that the expansion could raise carbon steel production from 600,000 metric tonnes annually to 1.2 million tonnes.

The project's first phase included a 50-megawatt thermal power plant designed to ease reliance on Zimbabwe's fragile grid. Additional power will also be generated from furnace gas, covering about 20% of the plant's needs, according to management.

Zimbabwe's Information Minister Jenfan Muswere said the expansion would help cut the nation's annual steel import bill.

Reviving industrial backbone

Zimbabwe is positioning itself to host Africa's largest steel plant, a project some experts say could transform the nation's economy.

The government considers steel production a cornerstone of its efforts to revive manufacturing and boost infrastructure development, especially following the collapse of its largest steel facility under former President Robert Mugabe.

The plant's closure in 2008, following years of mismanagement, underinvestment, and economic decline, has forced Zimbabwe to spend over $1 billion each year on steel imports.
- businessinsider