Tanzania’s steel and plastics firm Lodhia Group is putting up the country’s first billets plant. According to Lodhia Group managing director Mr Sailesh Pandit, the plant will help meet the high demand for billets in Tanzania and neighbouring countries besides helping fight off under valued, under declared and substandard steel imports from South Africa that have flooded the market. Speaking to delegates of the 39th Ordinary Sadc Summit of Heads of State and Government, who had visited the firm’s plants at Mkuranga, Mr Pandit said the new plant, whose construction is due for completion next month, will produce 150,000 tonnes of billets a year.
Going by the Steel Manufacturers Association, almost all plants in Tanzania are operating at less than 22% of their in-built capacity as a result of the cheap imports choking the market.
Tanzania’s demand for steel stands at 440,336 tonnes a year, but dumped imports alone grab the market share by 200,000 tonnes, equivalent to 45 per cent. (Ukrainian metal)