Tsingshan Group invests 5.7 billion yuan to expand its overseas steel plant, doubling its production capacity.

On August 15, 2025, Reuters published a report titled "China's Tsingshan to invest $800 million in its Zimbabwe steel plant."

According to foreign media reports on August 16, 2025, Tsingshan Holding Group, a leading global nickel manufacturer, plans to inject $800 million (approximately RMB 5.7 billion) into its steel project in Zimbabwe to significantly increase production capacity. It is understood that after the funds are in place, its Zimbabwe steel plant's annual production capacity will increase by 600,000 tons, reaching 1.2 million tons of carbon steel.

The project is located in the Mvuma region of central Zimbabwe and is operated by Dinson Iron and Steel Company, a subsidiary of Tsingshan Holding. Project Director Wilfred Motsi confirmed this major investment plan during a recent media tour of the plant.

Moshi explained that the $800 million investment will primarily be used to construct a modern, large-scale blast furnace and its supporting infrastructure. He emphasized that preparations for the second phase of the project (i.e., this expansion) are complete, but the company will adopt a prudent strategy and proceed cautiously depending on market conditions. "We are ready to move to the next phase, but we must closely monitor market conditions before finalizing implementation," Moshi stated. "We need to ensure the market can absorb the increased production."

Qingshan Holding has been deeply involved in Zimbabwe for many years. In addition to the core steel project being expanded, the group also has operations in ferrochrome, coking coal, and lithium mining in the country. This steel plant expansion is another important step for Qingshan Holding to further invest in Zimbabwe's resource development and industrial construction.

Reuters full text as follows: "Tsingshan Holding Group Plans to Invest $800 Million in Zimbabwe Steel Plant"

MVUMA, Zimbabwe, Aug 15 (Reuters) - Chinese nickel producer Tsingshan Holding Group plans to invest $800 million in its steel plant in central Zimbabwe through its unit Dinson Iron and Steel Company, a top company official said at a media tour on Friday.

(Reuters, Mvuma, Zimbabwe, August 15) On Friday, August 15, a senior official of Tsingshan Holding Group Co., Ltd. (hereinafter referred to as "Tsingshan Holding"), a Chinese nickel producer, said at a media tour that the company plans to invest $800 million in its steel plant in central Zimbabwe through its overseas subsidiary, Dinson Iron and Steel Company (hereinafter referred to as "Dinson Steel"). Tsingshan Holding Group, one of the world's leading nickel producers, has already made significant investments in Zimbabwe. Apart from its steel plant, Tsingshan also has ferrochrome, coking coal, and lithium mining businesses in the Southern African country. Project director Wilfred Motsi said on Friday that the funds would be allocated towards a blast furnace and supporting infrastructure to increase capacity from the current 600,000 metric tons of carbon steel annually to 1.2 million metric tons.

However, Motsi said the company would first assess whether market demand for carbon steel could absorb a sharp increase in output, adding that the funds would be used to build centering, rolling, and steel plants, as well as a blast furnace.

Dingsen Steel's project director, Wilfred Motsi, stated on August 15th that the investment would be used to construct a blast furnace and supporting infrastructure for the steel plant, including centering, rolling, and smelting facilities, to increase capacity from the current 600,000 tons of carbon steel per year to 1.2 million tons.

However, Motsi also indicated that the company would first assess whether market demand for carbon steel could absorb the sharp increase in production. “We are ready for the next stage, but we will closely monitor market conditions before committing. We need to ensure the market can absorb that much product,” said Motsi.

The first phase included a 50-megawatt thermal power plant to reduce reliance on Zimbabwe’s strained electricity grid. The plant will also generate additional power from furnace gas to cover about 20% of its needs, management said. Zimbabwe's Information Minister, Jenfan Muswere, said the plant would help reduce the country's steel import bill, which he estimated at $1 billion annually.