Tsingshan Holding Group, a major Chinese nickel producer, intends to invest $800 million to expand its steel plant in central Zimbabwe, operated by its subsidiary Dinson Iron and Steel Company (DISCO). This investment will fund a blast furnace, centering, rolling, and steel plants, and supporting infrastructure. The expansion is projected to increase carbon steel production capacity from the current 600,000 metric tons annually to 1.2 million metric tons.
Project director Wilfred Motsi indicated that while the immediate goal is to double output to 1.2 million tons, the company is also considering a further expansion to 2.4 million tons annually, depending on market demand. The first phase of the project included a 50MW thermal power plant to reduce reliance on Zimbabwe's electricity grid, with additional power generation from furnace gas covering about 20% of the plant's needs. The expanded facility's total power consumption could exceed 500 MW at full capacity, leading to plans for a wind farm and a hydroelectric dam to support growth and potentially supply surplus electricity to the national grid.
Zimbabwe's government views this expansion as crucial for reducing the country's annual steel import bill, estimated at $1 billion, and for reviving manufacturing and infrastructure development. DISCO aims to reach a total investment of $2 billion by 2030, with $1.5 billion already invested, creating over 2,000 jobs. Beyond steel, Tsingshan also has significant interests in ferrochrome, coking coal, and lithium mining in Zimbabwe, making it a central player in the country's industrial and energy sectors.
While the expansion plans are confirmed, the exact timing remains unclear, as Tsingshan will closely monitor market conditions to ensure sufficient demand for the increased product. The project aligns with Zimbabwe's Vision 2030 to transform the nation into an empowered, upper-middle-income economy, positioning the Manhize plant as Africa's potentially largest steel facility and a catalyst for rural industrialization.
