Indigenisation hits steel maker

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1705

THE confusion around the country’s indigenisation laws has had an adverse impact on the operations of top steelmaking company Steelmakers Zimbabwe that is now seeking partners to help complete its Masvingo Sponge Iron plant.

Blessed Mhlanga

The company, whose workers were mulling a strike, after failing to pay a 12,5% National Employment Council (NEC) approved salary, said it was in dire need of courting new capital to improve operations.

Last year, the NEC set $270 as the minimum wage for workers in the industry, which would have seen Steelmakers employees get a 12,5% increase on their salaries across the board.

Steelmakers reportedly pays its workers a minimum salary of $240 a month.

Group general manager Alexander Johnson said Steelmakers, currently operating at below 35% capacity, was looking for new capital of up to $30 million to shore up its operations at the Masvingo Sponge plant.

The plant opened in 2005 and was earmarked for a $50 million investment, but shareholders later withdrew their funds due to an economic meltdown prevailing then.

“Our operations in Masvingo were supposed to ensure that we produce sponge iron and process it to steel billets before forging it to complete products and exporting it, but shareholders withheld funds after an initial investment of $7 million,” he said.

“We, therefore, need $30 million to ensure that the plant in Masvingo is completed because at its present stage we cannot begin to get profits out of it, we can’t get that kind of investment locally so we have to start looking outside.”

Johnson said a number of investors had shown interest in the project, but they were scared off by the indigenisation law.
Currently, Steelmakers is exporting sponge iron from its Masvingo plant directly to Zambia at very low prices and thus creating a fiscal burden on its operations.

The company also needs another $6 million to rehabilitate its Redcliff-based works which was established in 1998.

“Those machines have a life span of 20 years and they need to be replaced at about $6 to $7 million, but because of the liquidity crunch in Zimbabwe that money cannot be found here,” he said.

12 COMMENTS

  1. these indian guys are just lying. all they do is externalize funds. for your own information Steelmakers has more than 200 indians working at the plant that have fake academic credentials for immigration purposes. they are given work permits as indians with special skills that are not found in Zimbabwe yet these guys can not even write their names. they are paid salaries in advance yet Zimbabwean employees are paid after two months. these indian guys have all expenses paid from accommodation, food, even airtime yet the Zimbabwean worker at the same company is suffering. Its a shame nothing is being done about this. Even the sister company Steelbase run by a one Upendra Alamwar has racial policies against the Zimbabwean employees. Its just sad

  2. there are Zimbabwean employees who are earning as little as $190-00 a month yet an Indian guy who can not even write his name earns $400-00 and gets an annual holiday trip to India all expenses paid. its sad no one is helping our fellow Zimbabweans being exploited by these Indian guys

  3. Why dont black Zimbabwean form their own companies instead of mourning about Indians earning more? Obviously if he is more senior he would earn more, and its not bad. Its happens at every company. My boss is white and he earns more than me, but my white subordinate earns less than me and so deos my other Indian subordinate. Why cant balack Zimbabweans see beyoinf skin colour? Mjaira zveZanu zvekuba. Dai chikavharwa chiSteelmakers chacho tione kuti $190 yacho uchainhonga here.

  4. Why dont black Zimbabwean form their own companies instead of mourning about Indians earning more? Obviously if he is senior he would earn more, and there is nothing creepy about that. If he is an expart he will also earn more. It happens at every company. My boss is white and he earns more than me, but my white subordinate earns less than me and so deos my other Indian subordinate. Why cant black Zimbabweans see beyond skin colour, and this silly racism? Majaira zveZanu zvekuba muchingotukirira vanhu. Dai chikavhagwa chiSteelmakers chacho tione kuti $190 yacho uchainhonga here. Hpana amanikidzwa kushandira maIndian acho. Rega ka unoshandira museyemwa anokubata sezai.

    • iwe Mavhaire usapenge mhani. senior kuitasei. is a brick layer a senior person. usataure zvinhu usina ruzivo. there are a lot of indians working mu yard just as other Zimbabweans but they have all those exepnses covered using fictitious accounting entries kuitira Zimra. tese hatingatange ma company usarware

  5. there is a lot of evidence to show this unfair treatment as well as tax evasion by these indians. these Johnson and Upendra guys vanoti kuvhara Zimra plus briberies ku immigration kuitira ma work permits.

  6. and these guys are lying that Simbi plant is not yet complete asi it has been operating for years now but ana Zimra vanongonzi we are still setting up. even in Chiredzi vaneta nekutora coal asi varikungoti they are still setting up the mine. zvino mira uone. these documents are ready to be released to expose these thieves. coming soon…………………………………

  7. endai munorima uko. takakupai mafarm…imi momanyira kumaIndia nemaChina! shandai chete kusvika masvuuka misana. Kana usingadi kushanda …rega ugara kumba kwako. Hakuna slavery muIndependent Zimbabwe yedu. Rega kushandira vabva kure unorima uko. Kustiza mafarm atakakupai muchida kushoresa hurumende neParty. nxa!

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