Tsingshan Plans to Triple Zimbabwe Steel Plant Output

Tsingshan Holding Group Co. is considering a massive expansion of its Manhizhe steel plant in Zimbabwe, with plans to triple output from 600,000 tons to 2 million tons. The company intends to diversify its steel products and increase overall volume, though the move depends on critical infrastructure upgrades.

CEO Benson Xu stated that rail improvements are necessary to support the growth. To facilitate the expansion, Tsingshan is in negotiations with the Mutapa Investment Fund to establish a rail joint venture and plans to construct a metallurgical coal processing plant.

Currently, the plant exports 60% of its construction steel, primarily to South Africa. This increase in production may further pressure South African steelmakers like ArcelorMittal South Africa Ltd., which recently closed a construction steel mill in response to import competition and a sluggish domestic economy.