The revival of Zimbabwean steel producer Lancashire Steel on well on course with the firm inviting former employees to re-apply for jobs.
The Kwekwe-based steelmaker has been mothballed for around a decade.
“We are pleased to request all serving employees of Lancashire Steel who served in various divisions in the plant division to submit their CVs and job profiles as a matter of urgency to the plant offices in Kwekwe,” said the company in a published notice today.
“Lancashire Joint Venture is open for business and we look forward to working with the team.”
At full tilt, Lancashire Steel can produce circa 4 000 tons a month.
But there have been significant reservations in some quarters over the deal that is driving the revival of the steelmaker.
The Zimbabwean government-owned Lancashire Steel and the Bostwana-based Whinstone Enterprises agreed on a deal, that some observers say is structured in such a way that allows the investor to strip the national asset.
According to sources, the deal allows Whinstone Enterprises unfettered access to scrap metal and pig iron held at Ziscosteel, which they can export and then use the proceeds to ramp up production at Lancashire Steel without injecting any capital.
Part of the agreement entails the firm producing 800 tons of steel per month translating to 40 percent production capacity, with a target to rump up production to 60 percent in the second year up to 80 percent in the final year.
The mothballing of Lancashire Steel around 2010 was concomitant with that of the parent company Ziscosteel, which was a major raw material supplier for Lancashire.
The Ziscosteel group of companies included BIMCO, Lancashire Steel, Frontier Steel, Ziscosteel Distribution Centre.
Before its collapse in 2008, Ziscosteel was Africa’s biggest integrated steel manufacturer exporting to Europe and Asia as well as other African countries.