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Essar emerges as preferred bidder for ZISCO

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November 09, 2010 Bookmark and Share  
Port Louis, Mauritius: Essar Africa Holdings Limited (“EAHL”), privately held company of the Essar Group today confirmed that it has received official notification from the Government of Zimbabwe (“GOZ”) for its selection as the preferred bidder for revival of Zimbabwe Iron and Steel Company (“ZISCO”) by way of purchase of GOZ’s 60% equity interest and has been invited to finalize the terms and conditions to complete the transaction.

Essar Group’s current operations in Africa include oil and gas assets in Nigeria, Kenya and Madagascar, telecom assets in East Africa, BPO operations in South Africa and coal concessions in Mozambique.

ZISCO is an integrated steel company with an annual capacity of one million tonnes engaged in manufacture of long products through BF/BOF process. ZISCO’s operations are situated in Redcliff with distribution centres in Bulawayo, Kwekwe and Harare. ZISCO derives raw material security through its subsidiary Buchwa Iron Mining Company (BIMCO) which owns and operates several iron ore mines and limestone quarries.

ZISCO has been operating at low capacity levels for the last several years due to shortage of working capital, and funds for maintenance / modernization of plant and equipment. As part of its proposal, Essar will invest in the revival & expansion of ZISCO and enhance its productivity by leveraging Essar’s expertise in the steel sector, ZISCO’s existing infrastructure and availability of key raw materials including coal and iron ore.

Firdhose Coovadia, Resident Director, Essar (Middle East & Africa) said “We are delighted to have been selected as the preferred bidder for the revival of ZISCO. We believe ZISCO is well positioned to be a low-cost steel producer that can meet the growing demands of the regional steel market and capitalize on the robust forecasted growth in sub Saharan Africa. We also recognize ZISCO as a vital and strategic asset for the Zimbabwean economy and Essar looks forward to making a meaningful contribution to the future development of Zimbabwe and its people.”

The Essar Group is a leading global steel producer on track to operating 14 MTPA steel capacity and has an excellent track record in successfully commissioning and operating greenfield and brownfield steel plants in different parts of the world including Canada, USA, UK, India and Indonesia.

About Essar Group
The Essar Group is a multinational conglomerate and a leading player in the sectors of Steel, Oil & Gas, Power, Communications, Shipping Ports & Logistics, Projects and Minerals. With operations in more than 20 countries across five continents, the Group employs 65,000 people.

Today, the Group continues to expand its global footprint, focusing on markets in Asia, Africa, Europe, the Americas and Australia. Essar invests significantly in the latest technology to drive forward and backward integration in its businesses, and on leveraging synergies between these businesses. It also focuses on in-house research and innovation to be a low-cost manufacturer with high quality products and innovative customer offerings.

For Media Queries
Firdhose Coovadia, Resident Director – Middle East & Africa, Essar
Phone: +263 734387706, +971 506887819, Email: firdhose.coovadia@essar.com

Manish Kedia, Sr. VP – Corporate Affairs, Essar Group,
Phone: +91 98197 30092, Email: manish.kedia@essar.com

B Ganesh Pai, General Manager - Corporate Communications, Essar Group,
Phone: +91 98197 30225, Email: ganehs.pai@essar.com
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