Zisco management kept in the dark on Essar deal

HARARE - Ziscosteel (Zisco) — now NewZim Steel — management has been kept in the dark about the deal between government and Indian steel make Essar Holdings (Essar).

The iron processor’s chief executive Alex Gowo told Parliament’s Industry and Commerce portfolio committee yesterday that he was not aware of the progress of Zisco’s resuscitation plan.

“We are in the dark…we are not privy to the agreement or even to give a hint on the progress of the agreement,” he said, adding that “we understand they have very good reasons why the shareholder (government) and the strategic partner (Essar) are operating that way”.

Gowo said as management, they had no revival plan that they had structured or been provided by Essar.

“However, we did attend a presentation by Essar where at least they were unveiling their roadmap indicating the size of plants they would like to come up with, which plants they would like to demolish and replace completely and which plants they feel they can refurbish and renovate.,” he said.

However, Gowo said he was not aware when the plans would be implemented and when the deal would be sealed.

He said Zisco, currently generating between $100 000 and $120 000 per month through local and export sales of sundry products, received a $400 000 loan from CBZ Bank to finance school fees and medical aid funds.

“…Essar at one point undertook to pay salaries of the workforce… (but) that was stopped in June 2012,” said Gowo.

Gowo’s remarks come as Industry minister Mike Bimha a week ago said Zisco would begin liquid steel operations at NewZim Steel in the next
24 months.

Bimha said the steel maker will have to first rebuild 70 percent of its plant.

“Liquid steel production will start in the next 24 months, however, other activities for sustainability and preservation will continue taking place,” he said.

“The company will be allowed to import steel billets for production at Lancashire Steel,” he said.

Comments (3)

nyaya yezisco inoshungurudza,vashandi nemhuri dzavo vashungurudzika,vamwe vavo vakatofa vamwe mhuri dzakaparara,vana vakasiya chikoro panzira,hurumende haisi kutarisa dambudziko rawira mhomho yavanhu ava.dai nyaya iyi yanyararwa zvayo,nokuti inoshungurudza zvikuru.ma minister ngaagare zvavo ku Harare,ivo chete ndivo vanhu.

james - 6 August 2014

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