Prime
Steel innovation supporting the construction industry
The home of TSUL in Lugazi eastern Uganda. PHOTO/COURTESY
You are one of the biggest players in the steel industry. What is the status of the industry currently in terms of growth and production capacity?
The industry has definitely grown as we now have more steel manufacturers. However, TSUL still remains the only company with the highest production capacity. With our direct-reduced iron (DRI) capacity being 300,000 tons, liquid steel being 550,000 tons, thermal mechanically treated steel (TMT) 260,000 tonnes, section 160,000 tons, wire rod 260,000 tonnes and open profile 100,000 tonnes.
What is Tembo’s contribution to the industry in terms of output and general growth?
Steel is essential for modern cities, it is central to transport systems, sports facilities, energy supply, housing, manufacturing and the chain effect keeps growing.
Building suitable housing for an ever-growing population is a major issue for us today, meaning housing solutions must be sustainable in both the building and use-phases of their life.
This is where we come in with various innovations to support that need. For instance, stronger steel reduces the need for heavy load-bearing beams.
Beams can now be made thinner, increasing the usable space in a building. Larger windows can be used, which increases light and ventilation inside.
Our steel is 100 percent made in Uganda through integrated route, using locally sourced iron ore from Kabale with the help of our DRI plant to make the most diversified final steel products. We are confident that we will continue our history of innovation and success.
The following are some of our highlights:
We have the largest product portfolio in Africa through integrated route.
We have the highest capacity of crude steel in East Africa.
We are Uganda’s only primary steel producer.
We were the first company in the world to produce 0.7mm hot rolled sheets through continuous configuration.
The first company in the world to convert cast iron into liquid low carbon steel.
We have the highest production of oxygen and nitrogen gas in East Africa.
And our company is among the top five core sector taxpayers in Uganda.
Recently the company announced that there will be a new production line. How is it going to impact you as a company and the industry as a whole?
We are adding another DRI plant, which is going to help us in increasing our production capacity.
Visitors pose with staff after a tour of the factory. PHOTO/COURTESY
This will definitely increase our market share. It will also increase supply, which is good for the local consumer and will bring in foreign exchange for Uganda through our exports.
The corona virus pandemic affected a lot of businesses, how have you managed to recover?
One advantage we had over other businesses is that we do not import any of our raw materials as we use locally sourced raw materials such as iron ore, dolomite, coal and scrap.
This means we were able to continue operations and eliminating importation costs enables us to reduce the cost of production hence our final products will be affordable for the end user.
As an industry leader what policies can the government implement to improve the industry as a whole?
The steel manufacturing industry generally grapples with high cost of production, which severely cuts into our return on investment.
So, government should be supportive to control importation of competing products such as wire rod and HRC for making hollow sections. They should also consider tax exemption for local manufacturers or at least remove value added tax (VAT) from the purchase of locally sourced raw materials.
In terms of products, how have you and other industry players innovated to meet customer expectation?
Tembo Steels has the largest product portfolio in Africa. We are very flexible in terms of customer expectation as the customer can make a custom size order and it can be delivered.
There has been a spike in counterfeits and fake products. How do you protect yours from duplication?
We have sensitised our customers on how to tell our products apart from the fake ones. One of the most identifying feature is our company label, which is prominently displayed on all of our products.
We also deliver our products straight from our factory to our suppliers. To maintain the integrity of our products, we constantly test our products in our laboratories and through Uganda National Bureau of Standards (UNBS).
Technology is driving most sectors of the economy, how are you adapting?
We have fully embraced technology as it helps to make work easier through managing systems and production much faster.
For instance, we have been able to manufacture the lightest section in the world. This was achieved through the use of cutting-edge technology.
Awards
The company has won several prestigious awards. It was the winner of the People’s Choice Quality Award from 2018 to 2022.
People’s Choice Quality Awards is an organization in Uganda that recognises business excellence annually by conducting comprehensive and objective independent market research surveys.
