Chinese firm awarded NewZim Steel tender

HARARE - Indian firm Essar Africa Holdings Limited (Essar) and Zimbabwe government have awarded a tender to refurbish NewZim Steel’s – formerly Zisco Steel – plant to an undisclosed Chinese firm.

Essar acquired a 54 percent stake in the government owned Redcliff-based steel maker in November 2011 under a $750 million deal.

Abigail Shoniwa, Industry and Trade secretary, said the corroded state of the giant iron processor’s plant and equipment stalled its operationalization.

“The plant has deteriorated further than we had initially thought and we have had to revise the initial business plan to incorporate the extensive refurbishment,” she told Parliament yesterday.

“…a Chinese company has been given a contract to design and manufacture new equipment,” she said.

Shoniwa noted that while there have been delays in implementing the multi-million dollar deal, mostly over transfer of mineral rights, for nearly four years, “progress is slowly taking place”.

“The delays have been frustrating the government, the investor and workers as well, but certain things are happening behind the scenes,” she said.

Recently, Industry minister Mike Bimha said 70 percent of NewZim Steel’s machinery is obsolete and re-starting production requires new ones.

Comments (3)

Why did the government make this deal in the first place, who was benefiting the people or individuals.Going with what we know at Zimbos its individuals.Let me eat if l don't eat these no DEAL thats the order of the day.

jackson dube - 25 September 2014

We indegenise, then close the shop and then ask foreigners to reopen and refurbish.

maita - 25 September 2014

This government is now outdone through fair wear and tear basis,there has to be a complete engine overhaul.look at it scandals are everywhere.what is justifies the stay in office of the following people Mr Chihuri,Mr Chiwenga,Perence Shiri,Zimondi,Tobaiwa Mudede,Chidyausiku,Mutasa,Chombo,Kasukuwere,Mavhaire,Made,Mpofu,Langa.Lets compare them with some of their colleagues who are determined like Mai Mujuru,Mnangangwa,Nhema,Mzembi,Bimha,and Gen V.Sibanda.In Business arena where can we go with the likes of Chiyangwa,Mupfumi but we do have astrounats like Masiiwa,Kamushinda etc.its food for thought.there lies the answer why we cant talk of indigenization as of now.Lets put the right people in their positions.Ahoy Mliswa

carson Macate - 2 October 2014

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