Chinese enterprise Hongdesheng launches Tanzania steel project with investment of approximately RMB 475–611 million

en.Wedoany.com Reported - On August 18, the groundbreaking and foundation-laying ceremony for the Hongdesheng Group Tanzania Steel Plant was held in Mkuranga District, Pwani Region, Tanzania. The project plans an investment of USD 70–90 million (approximately RMB 475–611 million), with a designed annual production capacity of up to 600,000 tons of steel. The previously planned construction period is about 18 months, with production expected to begin by the end of 2027.

Products cover plates, bars, wire rods, hot-rolled steel sheets, cold-rolled steel sheets, galvanized coils, color-coated steel coils, iron wire, and nails, positioning the project as a multi-category modern comprehensive steel industry base.

Capacity expansion from Southeast Asia to Africa

Hongdesheng Group, headquartered in Fujian, has been deeply engaged in the steel manufacturing sector for over three decades, having established a diversified layout spanning technology development, industrial manufacturing, and overseas investment. In 2019, the group launched its first overseas steel project in Phnom Penh, Cambodia, covering an area of 200 mu (approximately 13.3 hectares) with an annual output of 500,000 tons of high-speed bar and wire rod for construction, officially commencing production in 2020. Hongdesheng (Cambodia) Steel Co., Ltd. is one of the three major steel producers in Cambodia.

The Tanzania project marks the group's first steel capacity expansion into Africa following its presence in Southeast Asia. Public information shows that group chairman Lin Xiangrong also serves as president of the Fuzhou Overseas Chinese Chamber of Commerce, and Hongdesheng is one of the representative enterprises of "Rong merchants venturing into Africa".

Project preparation dates back to March 2026 — after Tanzania's Minister of Industry and Trade, Judith Kapinga, visited China, Hongdesheng Group expressed its investment intention; Lin Xiangrong subsequently led a team to Tanzania on April 16 to discuss investment matters with the local government.

The market logic of steel import substitution in East Africa

Tanzania is one of the most promising industrial investment markets in East Africa. Global trade tracking data shows that Tanzania's net steel imports have increased from 704,500 tons in 2020 to 1.9 million tons in 2025. Data from the Turkish Steel Exporters' Association shows that Tanzania's annual steel import value is approximately USD 700 million. In recent years, the Tanzanian government has vigorously promoted local industrialization, introducing policies such as tax reductions and exemptions, protection of foreign investment rights, one-stop approval, and industrial land guarantees to advance deep processing of local mineral resources. In March 2025, the Tanzanian government announced it would officially halt steel imports.

Against this backdrop, the Hongdesheng project is not an isolated case. In June 2026, the Tanzanian government launched the A1 Iron & Steel integrated steel plant in Dodoma with an investment of TZS 600 billion (approximately USD 230 million); the highly anticipated Liganga iron ore and Mchuchuma coal integrated project has also completed over 90% of its investment negotiations. Tanzania is transforming from a steel importer into a regional steel supplier, and the Hongdesheng project is an integral part of this industrialization process.