China-based steelmaker Tsingshan Holding Group is considering increasing annual production at its Manhize steel plant in Zimbabwe from the current 600,000 mt to as much as 2 million mt, according to report published by Bloomberg.
Product diversification to precede capacity expansion
Benson Xu, CEO of Tsingshan's Zimbabwean subsidiary, stated that the company initially plans to diversify the plant's product portfolio before raising output, adding that the proposed expansion would require improvements to rail infrastructure and the construction of a metallurgical coal processing facility. Tsingshan already operates iron ore mines supplying the plant, while the investment cost has not been disclosed.
Most production exported to South Africa
The plant, located about 205 km southeast of Harare and commissioned in 2024, currently sells 40 percent of its mainly construction steel production in Zimbabwe, while exporting the remainder primarily to South Africa, as well as to Malawi and Zambia. Tsingshan is also negotiating with Zimbabwe's sovereign wealth fund, Mutapa Investment Fund, regarding the establishment of a rail joint venture.
Expansion may increase pressure on South African steelmakers
The expansion could intensify competitive pressure on South Africa's steel industry, which is struggling with weak demand, unreliable rail services, high electricity costs and rising imports. ArcelorMittal South Africa closed a construction steel-producing mill in 2025, citing import competition and disadvantages against domestic producers using subsidized scrap, while Zimbabwe's state-owned steelmaker Ziscosteel has remained idle since 2008.
