Zimbabwe Iron and Steel Company is the largest steel works in Zimbabwe. It is located just outside Kwekwe, in Redcliff, Kwekwe District. Over the years the company has faced many operational problems and corruption scandals.
Historyedit
In 1942, the colonial government founded the Rhodesian Iron and Steel Commission (Riscom). It was sited at the steel plant at Redcliff, to develop the huge iron and limestone deposits nearby. In 1957, it changed its name to the Rhodesian Iron and Steel Company (Risco).[1]
It suffered from a lack of experienced personnel and low level of production which meant high unit costs.[2] In 1954, a debt of 1.7 million pounds sterling had to been written off as irrecoverable. In 1956, the loss-making situation was turned into a profit-making situation due to the formation of the Federation of Rhodesia and Nyasaland and the denationalisation of the industry.[2] In 1956, iron ore output from the company was 127,954 tons. By 1957, this had doubled to 257,166 tons.[1]
In 1965, the company employed up to 2,900 people. In 1980, after Independence, it was renamed the Zimbabwe Iron and Steel Company (ZISCO). By 1990 it employed about 5,500 people and indirect employment was around 50,000.[2] It used to export to Europe and Asia as well as neighbouring African countries.[3]
Problemsedit
In 2000, Ziscosteel operated without a fully constituted board. Its blast furnaces were no longer functional while its plants and equipment was now obsolete.[2] As of early 2008, the company was producing less than 12,500 tonnes, far below the break-even capacity of 25,000 tonnes.[4] By 2010, it could hardly pay its depleted workforce.[2] It has been claimed that more than 200 former workers have died since 2011 because they were unable to pay for medicine or hospital treatment.[3]
It was wholly owned by the government of Zimbabwe, until in November 2010, it invited bidders for a 64% stake of the ZISCO group of companies mainly to reduce or liquidate two large debts totalling $340 million, including $240 million to a German bank.[2] 54% of the company is now in the hands of Essar Africa Holdings Ltd (India-based[3]). The government of Zimbabwe still holds 36% and a consortium of private investors holds 10%.[4] Up to 3,000 jobs were saved.[2]
The ZISCO group of companies include BIMCO, Lancashire Steel, Frontier Steel, ZISCO Distribution Centre. All these companies are 100% owned by ZISCO.
It gets raw materials (such as iron ore) from Ripple Creek mine which is about 14 kilometers from ZISCO. Up to 70 million tonnes can be mined. Up to 200 million tonnes of limestone can be found on an open cast mine which is a few meters from ZISCO. Zimbabwe also has reserves of up to 22 billion tonnes of coal.[2]
Referencesedit
^ abLeonard Tow The Manufacturing Economy of Southern Rhodesia: Problems and Prospects (1960), p. 41, at Google Books
^ abcdefghTambo, Butler (25 March 2017). "Ziscosteel – What went wrong?". Sunday News. Retrieved 30 April 2018.
^ abcMahove, Christopher (31 May 2016). "Welcome to Redcliff: the Zimbabwean steel town turned ghost town". Equal Times. Retrieved 30 April 2018.
zimbabwe, iron, steel, company, largest, steel, works, zimbabwe, located, just, outside, kwekwe, redcliff, kwekwe, district, over, years, company, faced, many, operational, problems, corruption, scandals, history, editin, 1942, colonial, government, founded, r. Zimbabwe Iron and Steel Company is the largest steel works in Zimbabwe It is located just outside Kwekwe in Redcliff Kwekwe District Over the years the company has faced many operational problems and corruption scandals History editIn 1942 the colonial government founded the Rhodesian Iron and Steel Commission Riscom It was sited at the steel plant at Redcliff to develop the huge iron and limestone deposits nearby In 1957 it changed its name to the Rhodesian Iron and Steel Company Risco 1 It suffered from a lack of experienced personnel and low level of production which meant high unit costs 2 In 1954 a debt of 1 7 million pounds sterling had to been written off as irrecoverable In 1956 the loss making situation was turned into a profit making situation due to the formation of the Federation of Rhodesia and Nyasaland and the denationalisation of the industry 2 In 1956 iron ore output from the company was 127 954 tons By 1957 this had doubled to 257 166 tons 1 In 1965 the company employed up to 2 900 people In 1980 after Independence it was renamed the Zimbabwe Iron and Steel Company ZISCO By 1990 it employed about 5 500 people and indirect employment was around 50 000 2 It used to export to Europe and Asia as well as neighbouring African countries 3 Problems editIn 2000 Ziscosteel operated without a fully constituted board Its blast furnaces were no longer functional while its plants and equipment was now obsolete 2 As of early 2008 the company was producing less than 12 500 tonnes far below the break even capacity of 25 000 tonnes 4 By 2010 it could hardly pay its depleted workforce 2 It has been claimed that more than 200 former workers have died since 2011 because they were unable to pay for medicine or hospital treatment 3 It was wholly owned by the government of Zimbabwe until in November 2010 it invited bidders for a 64 stake of the ZISCO group of companies mainly to reduce or liquidate two large debts totalling 340 million including 240 million to a German bank 2 54 of the company is now in the hands of Essar Africa Holdings Ltd India based 3 The government of Zimbabwe still holds 36 and a consortium of private investors holds 10 4 Up to 3 000 jobs were saved 2 The ZISCO group of companies include BIMCO Lancashire Steel Frontier Steel ZISCO Distribution Centre All these companies are 100 owned by ZISCO It gets raw materials such as iron ore from Ripple Creek mine which is about 14 kilometers from ZISCO Up to 70 million tonnes can be mined Up to 200 million tonnes of limestone can be found on an open cast mine which is a few meters from ZISCO Zimbabwe also has reserves of up to 22 billion tonnes of coal 2 References edit a b Leonard Tow The Manufacturing Economy of Southern Rhodesia Problems and Prospects 1960 p 41 at Google Books a b c d e f g h Tambo Butler 25 March 2017 Ziscosteel What went wrong Sunday News Retrieved 30 April 2018 a b c Mahove Christopher 31 May 2016 Welcome to Redcliff the Zimbabwean steel town turned ghost town Equal Times Retrieved 30 April 2018 a b Rich partner for Zisco permanent dead link accessed 14 February 2008 Retrieved from https en wikipedia org w index php title Zimbabwe Iron and Steel Company amp oldid 1116559130, wikipedia, wiki, book, books, library,
