HomeNewsZiscosteel official handover delayed

Ziscosteel official handover delayed


Government is expected to officially hand over Ziscosteel to its new investors, Essar Africa Holdings, today, after the ceremony was cancelled on Monday.

President Robert Mugabe and Prime Minister Morgan Tsvangirai are scheduled to grace the occasion, which will take place at Torwood Stadium in Redcliff.

Tsvangirai confirmed the development last Thursday during his tour of distressed companies in Kwekwe and Redcliff.

Earlier this year, Essar Holdings Africa bought majority shares in Ziscosteel, which will now trade as New Zimbabwe Steel, in a deal worth $750 million.

However, work at the giant steel company has been delayed due to protracted negotiations between government and the new investor over power, water and tax concessions.

“Very soon, we will be opening Ziscosteel, which was brought down by 31 years of Zanu PF misrule . . . this is part of our government workplan which seeks to give support to the resuscitation of industry,” said.

Tsvangirai, when he toured industries in the Midlands province last week.

The Premier expressed worry during the tour after observing that several companies in the province, including Sable Chemicals, were teetering on the brink of collapse owing to continued use of outdated technology.

“Ziscosteel is not the only company which needs help, Sable Chemicals is collapsing. The company is still using technology left in place by (former Rhodesian leader) Ian Smith, David Whitehead in Kadoma (in Mashonaland West) has collapsed. We need to resuscitate all these companies so that we can respond to the jobless youths of our country,” Tsvangirai said.

He also visited Kwekwe General Hospital and Oliken Ferro Chrome as he sought to get first-hand information on problems bedevilling industries and see how they could be assisted.

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