Museveni Launches Shs 466 Billion Steel Expansion, Eyes Regional Market

President Yoweri Museveni recently inaugurated the Shs 466 billion Danieli Cold Rolling Mill Complex, a facility operated by Roofings Group. This development marks a pivotal moment in Uganda’s industrial ambitions, aiming to increase domestic steel output and decrease reliance on imported finished steel products.

The new complex significantly expands Roofings Group’s capacity, adding 150,000 metric tonnes annually to its cold-rolled steel production, doubling the total to 300,000 tonnes. This type of steel is crucial for products requiring high strength, smooth finishes, and precise dimensions.

The facility integrates advanced processing lines, including a 4-Hi Cold Rolling Mill for precise thickness reduction and improved surface finish, an Edge Trimming Line for exact width specification, and a Hot-Dip Galvanizing Line for corrosion resistance. A fourth line applies vibrant color coatings, with features designed for efficient color switching and environmental protection through exhaust gas treatment.

President Museveni emphasized the economic benefits, highlighting how value addition processes like coating and galvanizing in Uganda reduce costs and create local employment compared to offshore manufacturing. He commended Roofings Group’s growth from a small operation to a major player with substantial turnover and exports.

Looking ahead, both the government and Roofings Group are focused on ‘vertical integration’—establishing a comprehensive steel industry that manages more production stages, from raw material extraction to finished products. Uganda possesses substantial iron ore reserves, estimated at over 500 million tonnes, which could support domestic production for centuries.

Roofings Group has initiated exploration efforts to accelerate plans for integrated iron and steel manufacturing. This strategic move aligns with the potential for increased steel consumption in Uganda, which currently stands at 20 kilograms per person, well below the global average of 200 kilograms, indicating significant room for growth as the nation progresses in construction and development.

Source: The Observer (Uganda)