Dinson Iron and Steel Company (DISCO), a part of China’s Tsingshan Holding Group, has started exporting to South Africa.
This comes at a tough time for South Africa’s own steel industry, especially for major player ArcelorMittal.
DISCO is currently making pig iron and steel billets at its plant in Manhize, just outside Mvuma.
They kicked off production last year and have quickly ramped things up, aiming to hit 600,000 tonnes a year in this first phase, with plans to eventually reach five million tonnes annually.
Speaking to The Herald, DISCO’s project director, Wilfred Motsi, confirmed the company has begun getting orders from South Africa. Said Motsi:
We are starting to see orders come in from South Africa. While they are not massive yet, it’s a promising start.
Steel exports to South Africa come as ArcelorMittal South Africa faces serious trouble. The company is in talks with the government to avoid shutting down its long steel operations, putting around 3,500 jobs at risk.
It blames weak local demand, stiff competition from mini-mills using scrap, and a surge of cheaper imports, especially from China.
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