NewZim Steel eyes export market

Published: 13 May 2014

Essar Holdings director for Africa Firdhose Coovadia said New Zim Steel targets to produce international standard quality steel products as it eyes to capture the export market.

This follows indications that when functional, the steel market would only consumes a paltry 100 000 tonnes of steel annually.

Coovadia told journalists last week that the plant's anticipated production outweighs local consumption demand hence the need to focus on producing world class standard.

"According to our best research, local consumption of steel is estimated at 100 000 tonnes a year. Even if we triple the economy by, it means that national demand will be at 300 000 tonnes of steel.

"This against our initial production of 500 000 tonnes of steel per year in the first 24 months, which will be increased to 1,2 tonnes per annum," he said.

Last week government concluded crucial talks with Essar management which saw government agreeing to give 80% mining rights to the Indian conglomerate to finalise the deal.

As per the original bid provisions, minister of Industry and Commerce Mike Bimha said the initial phase of the project will involve the revival of NewZim Steel.

"In order to ensure that the revived steel plant is globally competitive, considerable time and effort has been expended in readjusting the revival process.

"This readjustment of the plant has resulted in a substantial number of facilities at the plant being replaced entirely with new steel making technology which will be undertaken jointly with the Chinese and Indian Engineering Procurement and Construction (EPC) contractors," he said.

For the speed revitalisation of the plant, government and Essar agreed to kick start operations at Lancashire Steel using imported feedstock in the next six months.
- Zim Mail