China's Tsingshan $1bn steel plant in Zimbabwe starts production.

In a significant move that underscores China's growing influence in Africa, Tsingshan Holding Group, a titan in the nickel industry, has officially commenced operations at its state-of-the-art $1 billion steel plant in central Zimbabwe. 

The inauguration of the plant, known as Dinson Iron and Steel Company (DISCO), was announced by project director Wilfred Motsi on Thursday. 

The facility is poised to produce an impressive 600,000 metric tons of carbon steel annually  during its initial phase. This ambitious production target is a testament to Tsingshan's commitment to bolstering Zimbabwe's industrial capabilities and contributing to the nation's economic development³.

DISCO has already begun producing pig iron, a crucial raw material for steel manufacturing. By July, the company plans to transition to the production of actual carbon steel, marking a significant milestone in the plant's operational timeline³. While the duration of the first phase has not been disclosed, it is expected to set the stage for future expansions and technological advancements.

Tsingshan's investment in Zimbabwe extends beyond the steel plant. The conglomerate has also established operations in ferrochrome, coking coal, and lithium mining within the country. These ventures are part of Tsingshan's broader strategy to diversify its portfolio and tap into Africa's rich mineral resources¹.

In addition to its industrial pursuits, Tsingshan has demonstrated a commitment to sustainability by constructing a **50 megawatt thermal power plant** at the Dinson site. This facility will not only support the steel plant's energy requirements but also contribute 20% of its electricity needs through gas produced by its furnace³. Moreover, Tsingshan is exploring renewable energy options by planning to build a solar power plant, which will help mitigate the impact of Zimbabwe's frequent electricity shortages on its operations³.

As Tsingshan continues to expand its footprint in Africa, it is set to play a pivotal role in shaping the continent's industrial landscape.