Zambia is poised to save about US $150 million per year in iron and steel imports following the setting up of the Kafue Integrated Iron and Steel by Universal Mining and Chemical industries
Currently, Zambia imports most of its iron and steel products used in the construction industry.
The US $120 million project investment when fully operational by next year June is expected to directly create about 6000 jobs and more subsidiary business.
Speaking during the brick laying ceremony at the plant this morning, President Levy Mwanawasa said the setting up of the plant will contribute to job and wealth creation in Kafue Town.
Dr. Mwanawasa further said the plant would augment the other efforts for similar opportunities such as Nikel Mining.
He observed that the people of Kafue have faced a lot of economic hardships following the problems at the Kafue Textiles Limited (KTZ) and the Nitrogen Chemicals of Zambia (NCZ).
He said the problems at the two companies, which are the major sources of employment for the locals, have been a source of concern but stated that his administration has tried under difficult financial circumstances to address some of the problems.
Dr. Mwanawasa disclosed government a few years ago paid off what was owed by KTZ to its former workers after negotiating terms with them.
He revealed government will address in a more concerted manner some of the problems at the NCZ.
Dr. Mwanawasa urged youths to take advantage of the business opportunities that are opening in the area.
He said government has created the Youth Empowerment Fund (YEF) which they can use to start up businesses.
And Dr. Mwanawasa has pledged his government’s assistant to the plant so as to ensure that the project succeeds.
He said with the past failed efforts by the State to establish an iron and steel plant, that government was ready to listen to the problems that the company will face.
Meanwhile the President has however urged the company to ensure that it takes care of environmental concerns.
Speaking at the same function, Commerce, Trade and Industry Minister Felix Mutati commended financial institutions that have assisted the company in providing bridge up resources.
He said government was encouraged that local businesses have started investing in the Zambia economy.
And Company Director for Corporate and Public Affairs Bright Chunga said the plant will bring economic liberalisation on the country’s imported of the iron and steel products.
He said Zambians would from next year be able to build their homes using cheaper materials with readily available iron and steel products made locally.
The Iron and Steel project is a six year project to be conducted in three phases.
The company is expecting to produce about 100 000 tonnes of iron and steel per year in the first phase and reach 280 000 by the sixth year.