HARARE — Dinson Iron and Steel Company (Disco) plans to raise annual steel production at its Manhize plant to about 1.8 million tonnes, nearly three times its current installed capacity of 600,000 tonnes, as the Chinese-owned steelmaker moves to broaden its product range and strengthen its position in regional markets.
Dinson chief executive Benson Xu told Parliament’s Portfolio Committee on Mines that Zimbabwe’s ability to realise its full steel-production potential would depend heavily on improvements to the country’s rail infrastructure. The company is also in discussions with Mutapa Investment Fund over a possible joint venture, potentially deepening state participation in the development of the steel industry.
As The Zimbabwe Financial Mail reports, the proposed expansion comes as Dinson seeks to move beyond its existing production base and build a broader integrated industrial operation. The company is diversifying its steel products while examining additional opportunities to process metallurgical coal for use in its furnaces.
The expansion is also being accompanied by downstream industrial projects. Dinson expects its new cement plant to begin production in the fourth quarter, adding another manufacturing stream to the Manhize complex and potentially strengthening the project’s integration with Zimbabwe’s wider construction and infrastructure economy.
Rail infrastructure becomes critical
The planned increase in steel output places transport infrastructure at the centre of Zimbabwe’s industrialisation strategy.
Xu told legislators that Zimbabwe would require more efficient rail infrastructure if the country is to fully exploit its steel potential. Higher production would inevitably increase the movement of iron ore, coal, limestone and finished steel, making rail capacity increasingly important to the economics of the operation.
Tsingshan’s Dinson Steel plans to triple output at its Manhize plant from the current 600,000 tonnes a year.
Dinson CEO Benson Xu told Parliament’s Portfolio Committee on Mines that for Zim to meet its full steel potential, it will need better rail infrastructure. The company… pic.twitter.com/MSEQjrCIUl
— newZWire (@newswireZW) August 25, 2026
NewZwire reported that Dinson is already engaging Mutapa over a possible joint venture, while the company continues to expand its industrial footprint around Manhize.
The potential partnership would come as Zimbabwe attempts to use state-owned investment vehicles and strategic assets to support industrialisation, particularly in mining, metals and manufacturing.
Regional markets present both opportunity and risk
Dinson’s expansion comes against a complicated regional trading environment.
Zimbabwean steel producers face tariff barriers in some neighbouring markets. Zambia, for example, imposes a 30% tariff on certain Zimbabwean steel products, potentially limiting the competitiveness of local producers seeking to expand exports.
South Africa presents another important market. ArcelorMittal South Africa has previously raised concerns about competition from Zimbabwean steel imports, particularly as Dinson increases production.
Xu, however, said Dinson does not regard South Africa’s steel industry as a direct competitor.
“We do not see South Africa as competition,” Xu said, while expressing concern that Pretoria could introduce higher surtaxes affecting Zimbabwean steel exports.
The issue highlights the central challenge facing Dinson’s expansion: producing more steel is only one part of the equation. The company must also secure competitive access to regional markets, transport its products efficiently and manage tariff and trade-policy risks.
Dinson seeks easier operating environment
The company has also raised concerns over the cost and administration of operating in Zimbabwe.
Dinson currently holds a nine-year land lease for the Manhize development and is seeking an extension. Management has complained that it is required to pay fees to multiple Government agencies in relation to the same lease, adding to the cost and complexity of operating the project.
The company is also seeking changes to the classification of steel under Zimbabwe’s mineral regulatory framework.
Dinson argues that treating steel as a mineral creates unnecessary administrative delays in the sale and movement of finished products. Removing steel from that classification, it says, could streamline transactions and improve the efficiency of the business.
For Zimbabwe’s broader industrialisation ambitions, those concerns are significant. The country’s ability to attract large-scale manufacturing investment will depend not only on mineral resources and capital availability but also on the speed and predictability with which investors can operate.
Expansion raises the stakes for Zimbabwe’s steel industry
Dinson’s proposed threefold increase in production would represent a major escalation in Zimbabwe’s steel ambitions.
At 1.8 million tonnes a year, the Manhize operation would become a substantially larger regional producer, increasing demand for rail capacity, energy, raw materials and downstream markets.
The investment could also deepen the country’s import-substitution strategy while creating opportunities for downstream manufacturers using locally produced steel.
But the expansion will ultimately be judged on more than production volumes. Competitive energy costs, reliable transport, access to regional markets, tariff conditions and a predictable regulatory environment will determine whether Zimbabwean steel can translate greater capacity into sustainable export earnings.
For now, Dinson’s strategy points towards a broader industrial model in which steel, coal processing and cement production are developed around a single integrated industrial base.
As The Zimbabwe Financial Mail notes, the next phase of Manhize is therefore less about simply producing more steel and more about whether Zimbabwe can build the infrastructure, market access and policy environment required to make that additional capacity commercially competitive.
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