Chinese steel manufacturer Hongwang New Materials Technology Co., Ltd has said it is expanding its investment plans into Malawi as it seeks to establish manufacturing operations in Africa.
Hongwang New Materials Deputy General Manager for Administration, Deng Weiquan, said this when African journalists visiting under the China International Press Communication Centre programme toured their intelligent manufacturing factory in Hunan Province.
Deng said the company had signed a long-term investment agreement with Tanzania and was developing factories in Malawi, Madagascar and other countries in the region.
He said the company was working with China’s Ministry of Foreign Affairs on a ‘Two Countries, Two Parks’ initiative, linking an industrial park in Loudi, Hunan, with another in Dar es Salaam, Tanzania.
“We plan to transfer technology, capital and equipment to Africa, where products will be processed for local use, exported to China or sold in other markets.
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“The Hunan project was established in September 2021, construction started in February 2022, and its first phase began operations in March 2023. The firm records annual sales of about 3.5 billion yuan and employs around 850 people,” Deng said. Deng described high grade silicon steel, also known as electrical steel, as an important material used in mobile phones, power tools and vehicles because of its role in converting electricity and magnetism.
In an interview, economist Maury Siyasiya expressed optimism about the proposed investment, saying it could help reduce Malawi’s reliance on imported steel and create opportunities for local businesses.
“The government should ensure that the proposed investment translates into actual production, jobs and economic benefits for Malawians,” Siyasiya said.
