Mining and Chemical Industries Limited (UMCIL) has expressed concern over lack of local market for its steel as consumers prefer imported products.
Currently, the company produces about 120,000 tonnes of steel annually and exports 84,000 tonnes, representing 30 percent of local consumption.
UMCIL /Trade Kings civil engineer Ernest Mande said 70 percent of steel produced is sold outside the country.
Mr Mande said in an interview recently that, “When we just started operations in 2008, 70 percent of our production was sold within the country and only 30 percent was exported but this has since changed. We now export 70 percent is exported to the entire Southern African Development Community region and others areas.”
The company exports to Brundi, the Democratic Republic of Congo, Kenya, Tanzania, South Africa, and Zimbabwe among others.
He said though the locally produced steel is cheaper, only a few contractors are buying from UMCIL.
“The reduction in the amount of steel being sold within the country is due to certain people who are still rigid and prefer to use imported products…There is need for people to change their mindset towards locally produced products and have confidence in them as they are also of high quality,” Mr Mande said.
Currently, Kafue produced steel meets the Zambia Bureau of Standards, South African Bureau of Standards and the firm has also engaged the British Bureau of Standards on the quality.
Mr Mande said the country’s bad practises are robbing Government of the much-needed resources through capital flight which occurs when assets or money rapidly flow out of a country due to an event of economic consequence.
Source: daily-mail.co.zm
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