Steel Output on rise
MMI higher steel production meets rising national demand and satisfies the market
By Francis Maingaila
Lusaka, Zambia24 — (19-11-2025) -- MMI Integrated Steel Mill has appealed to government to address policy inconsistencies believed to disadvantaging local manufacturers and slowing down the growth of the steel industry.
Director Gopal Kedia said when he led Minister of Commerce, Trade and Industry) MCTI) Chipoka Mulenga on a conducted tour of the factory that although the company invested US$50 million in the plant, operations have remained below capacity, with the factory running at only 30 percent largely due to imported roofing sheet materials from China that continue to receive incentives which allow traders to undercut local producers.
Kedia said some importers who merely cut and roll colour coils and galvanised coils are classified as manufacturers and are benefiting from duty-free incentives meant for actual producers, leaving integrated plants like MMI at a competitive disadvantage.
He also highlighted the severe impact of power outages on production, saying the plant is forced to rely heavily on generators despite occasional support from Zesco.
He added that although MMI exports limited quantities of its products to Zimbabwe and the Democratic Republic of Congo, the plant is unable to expand its operations under the current policy and energy constraints.
Kedia emphasised that the plant runs only three to four months in a full year because of the unfair competition created by incentives given to importers who perform minimal processing but are treated as manufacturers.
Hon. Mulenga said the Ministry of Commerce will work with other ministries to review the challenges affecting the industry, adding that stabilising the economy, improving the business environment and supporting local manufacturers remain central to government’s agenda. He said with fuel prices reduced, inflation lowered and the currency stabilised, government is now focused on ensuring that industries such as steel manufacturing have the support they need to grow, create jobs and contribute to sustained economic development.
Mulenga said the issues raised by MMI come at a time when Zambia is experiencing increased demand for steel products due to intensified mining activities, expanding construction works and growing requirements in the agriculture and energy sectors.
Government has since hailed the latest industrial developments at MMI Integrated Steel Mill, describing the plant’s expansion and increased production capacity as a significant boost to Zambia’s growing demand for steel in mining, construction, agriculture and energy sectors.
Speaking during the tour, Hon. Mulenga said the ongoing developments at MMI demonstrate the critical role local steel manufacturers are playing in supporting the country’s renewed economic activity, especially following the revival of the mining sector.
The Minister said the increased demand for steel products such as black pipes, roofing sheets, hollow sections and structural components has been driven by heightened construction activities and the resurgence of mineral exploration.
He said industrialisation is key to economic growth and that steel is at the centre of that industrialisation. The revival of the mining sector, he noted, has created huge demand for construction materials, and plants like MMI are responding to this demand in line with the President’s vision under the Eighth National Development Plan.
He explained that the plant, a subsidiary of New Century Group, is an example of an integrated facility producing a wide range of materials—from roofing sheets and steel pipes to square tubes and nails—essential to the country’s economic sectors.
Hon. Mulenga said government is prioritising increased local production of steel to support mining, agriculture, energy and construction, adding that MMI’s operations are already making a significant impact. The plant employs more than 400 workers directly and supports an estimated 2,000 jobs indirectly.
He emphasised that while government supports accelerated industrial growth, it will not compromise worker safety, stating that safety must remain job number one.
He commended MMI for ensuring that all workers were properly equipped with personal protective equipment and said such practices must be upheld across all industries.
He added that human capital remains Zambia’s most important resource, noting that value addition, industrialisation and trade must prioritise the welfare and protection of workers.
Hon. Mulenga also said the steel industry is critical to stabilising the country’s energy infrastructure, especially during the ongoing energy crisis.
He explained that government is currently directing the limited available electricity toward industries to preserve jobs and maintain production while long-term solutions are being developed to support both industrial and domestic energy needs.
He emphasised that industrialisation remains central to national development and that ensuring local steel producers operate competitively is aligned with government’s vision under the Eighth National Development Plan.
The Minister noted that MMI, a subsidiary of the New Century Group, is among the few fully integrated steel plants in Zambia producing a wide range of materials essential for economic growth, including black pipes, roofing sheets, hollow sections, square tubes and nails.
He said such plants are crucial in supporting mining operations, agricultural processing, construction and energy infrastructure.
Mulenga also underscored the importance of worker safety, saying industrial growth cannot come at the expense of workers’ lives.
He expressed satisfaction with the safety standards observed at the facility, where employees were seen wearing appropriate Personal Protective Equipment.
He added that although government is prioritising available electricity for industries to protect jobs and maintain production, long-term energy solutions are being developed to ensure both industrial and domestic consumers benefit from stable supply.
Mulenga said stabilisation of fuel prices, reduction of inflation and the strengthening of the local currency form part of government’s broader efforts to create a predictable business environment that supports industries such as steel manufacturing.
He concluded that increased steel production is vital to sustaining national development, creating employment and ensuring Zambia fully benefits from its economic transformation.
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