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Essar Selected as Preferred Bidder for ZISCO
11/10/2010 - Essar Africa Holdings Ltd. has received official notification from the Government of Zimbabwe (GOZ) for its selection as the preferred bidder to purchase GOZ’s 60% equity interest in Zimbabwe Iron and Steel Co. (ZISCO).
Essar Africa Holdings Ltd. (EAHL) has received official notification from the Government of Zimbabwe (GOZ) for its selection as the preferred bidder to purchase GOZ’s 60% equity interest in Zimbabwe Iron and Steel Co. (ZISCO). EAHL has been invited to finalize the terms and conditions to complete the transaction.
ZISCO is an integrated steel company with an annual capacity of 1 million tonnes engaged in manufacture of long products through BF/BOF processes. ZISCO’s operations are situated in Redcliff with distribution centers in Bulawayo, Kwekwe, and Harare. ZISCO derives raw material security through its subsidiary Buchwa Iron Mining Co. (BIMCO), which owns and operates several iron ore mines and limestone quarries.
ZISCO has been operating at low capacity levels for the last several years due to shortage of working capital and funds for maintenance/modernization of plant and equipment. As part of its proposal, Essar will invest in the revival and expansion of ZISCO and enhance its productivity by leveraging Essar’s expertise in the steel sector, ZISCO’s existing infrastructure, and availability of key raw materials including coal and iron ore.
Essar Group’s current operations in Africa include oil and gas assets in Nigeria, Kenya, and Madagascar; telecom assets in East Africa; BPO operations in South Africa; and coal concessions in Mozambique.
Firdhose Coovadia, Resident Director, Essar (Middle East & Africa), said: “We believe ZISCO is well positioned to be a low-cost steel producer that can meet the growing demands of the regional steel market and capitalize on the robust forecasted growth in sub Saharan Africa. We also recognize ZISCO as a vital and strategic asset for the Zimbabwean economy, and Essar looks forward to making a meaningful contribution to the future development of Zimbabwe and its people.”
Essar Africa Holdings Ltd. is a privately held company of the Essar Group, which is a leading global steel producer on track to operating 14 million tonnes-per-annum steel capacity. The Group has a successful track record in commissioning and operating greenfield and brownfield steel plants in different parts of the world, including Canada, U.S., U.K., India, and Indonesia. It is a leading player in the sectors of steel, oil and gas, power, communications, shipping ports & logistics, projects and minerals. With operations in more than 20 countries across five continents, the Group employs 65,000 people.
