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Steelmakers Zimbabwe resumed production at its sponge iron plant on Monday.

Operations at the plant were suspended in October last year after continuous breakdowns of production equipment including the main gearbox that propels the kiln where iron ore and coal are fed to produce sponge iron.

Speaking to Business Chronicle yesterday, business personalities said the move by the company to resume operations would go a long way in alleviating the plight of workers who were rendered jobless after the company suspended operations.

Mr Sydney Chikaka of Amazing Village Lodge said the reopening of the company would add value to many businesses in the city as more people would have disposable income.

“We are happy to learn that the company has resumed operations after many people were stranded when they closed shop last year. We expect our businesses to improve because if we have more people in gainful employment it means there will be more disposable income and obviously our fortunes will stand to change,” said Mr Chikaka.

However, another business executive, Dr Fredrick Kasese, raised concern over the way the company was operating and urged the management to look for permanent solutions to its challenges.

“While we hail the resumption of operations, we urge the powers that be to come up with a permanent solution so that the company operates on a long-term basis.

“Workers should be assured of constant income instead of the company operating in fits and starts.

Employees cannot plan when they fear that any time they can lose their jobs. When the company resumes operations, let us have it operating on long-term basis.

“We don’t want a situation whereby the company opens today and closes the following day. We expect companies to have concrete plans that will ensure continuity of operations for the benefit of the community and its workers,” he said.

The company’s general manager Mr Alexander Johnson is on record as saying they were not intending to stop production soon.

He said the company had secured markets for sponge iron in South Africa, Malawi, Pakistan and locally.

Steelmakers resumed operations with 110 employees with a bulk of them being contract workers but the number of workers is likely to increase as production picks up.

Sponge iron is mainly used as a raw material for specialty steel as well as a substitute for scrap metal during the production of steel.