Tanzania Daily News (Dar es Salaam)

Tanzania: Trishala Rolling Mills - Scrap Firm Shows Its Mettle

Marc Nkwame

16 November 2009


Arusha — THE process of recycling resources has become more and more prominent over the last few years, particularly in the scrap metal trade which has been buoyed as a result.

Scrap metal starts out life as any other metal material. It is built for a purpose and is often reserved for that specific use, be it in building or construction, machinery, technology or agriculture, where it will remain forever more in an ideal world.

However, what happens when that machine breaks down, or the building is demolished to make way for some newer construction project?

The metal from there becomes scrap, unwanted and many look to simply get rid of it out of their hands, usually by visiting a scrap metal dealer who will buy different bits of metal for money. So what's the big idea about recycling then?

When people think of recycling, they tend to think of some chemical or mechanized process whereby a recycling plant takes some old material and turns it in to something completely new, suitable for reuse ad ready for sale.

We also tend to think of this as an environmentally friendly practice, but we're never really told why.

In fact, recycling can be the process of melting scrap metals for resale, but it can also be put under the heading of what your average scrap dealer will do when he sells a piece of metal on to someone else.

Recycling can be defined as reusing in any sense of the word, which is environmentally friendly for one key reason -- the more scrap metal reintroduced into circulation, the less metal that has to be manufactured.

Manufacturing metal is by its very nature environmentally intensive, creating toxic fumes and a certain amount of wastage that's anything but kind to the planet.

As we cut down the amount of manufacturing going on, we cut out some of the pollution and waste that wreaks havoc on the earth, yet we fill in the void created by recycled scrap metal.

With scrap metal just as usable as fresh metal and far less environmentally taxing,

it makes sense to promote the trade and use of scrap in manufacturing processes, rather than to continually produce more and more fresh material at the expense of the environment.

For this reason, recycling scrap metal is both cost effective for the buyer, and environmentally friendly all round. Six years ago Tanzania slapped a ban on scrap metal export and is still in force as it will help protect and promote the development of the country's fledgling industries.

"We are serious with the ban because we want the commodity to be used locally for the purpose of creating more jobs to our people," the then Minister for Industry and Trade, Juma Ngasongwa, was quoted as having said.

Demolition (also known as wrecking or razing) can be a large source of scrap metals depending on the type of item, structure or facility being demolished. Metal buildings or large industrial complexes usually provide the largest sources of metals for recycling.

Scrap metals for recycling can be found in the structural members of the buildings, electrical and piping systems, tanks, reactors, heat exchanges, motors and other mechanical items and equipment.

Employing close to 400 workers and collecting 1000 tons of scrap metal every month, may not be bad business for the Themi-Hills based Trishala Rolling Mills of Arusha.

The firm is the only iron and steel recycling factory in the northern zone and according to the firm's management, Trishala recently became the third largest taxpayer in Arusha Region after Tanzania National Parks and Ngorongoro Conservation Area Authority.

Since the other two were state owned institutions, Trishala may well rank as the number one corporate taxpayer in Arusha and Manyara regions after overtaking its elder sibling, the Steel Centre Limited which is the flagship firm for the steel centre group -- a parent company.

Mr Manoj Menon, one of the founding officials, however points out that Tanzania has a scarcity of scrap metal. "The country has not undergone much industrialization in the past, that is why it is hard for us to find raw materials," he pointed out.

"As a result, we are forced to import metal billets from as far as Korea and South Africa to supplement the raw material requirement," he added.

'Billets' refers to a cast semi finished product. They are also known as 'Ingots', particularly of smaller sizes.

A billet is typically cast to a rectangular, hexagonal or round cross section compatible with secondary processing, for example, forging or milling.

It can be produced either as coil or cut lengths. Ingots and billets are collectively known as bar stock.

Trishalla Rolling Mills officials say importing such raw materials can be a very expensive undertaking especially where shipment costs are involved.

He says, "all the same, despite such scarcity, business morals have to be observed strictly. At the factory's gate entrance, there is a large sign board which reads 'Hatununui vyuma vya reli isipokuwa kwa kibali kutoka Tanzania Railways!' literary translated:

We do not buy metal rail parts except with official permission from the Tanzania Railways. That sign is meant to be a warning to the firm's various scrap metal dealers supplying the plant with raw materials.

Tanzania has been hit by vandalism in the railways infrastructure after some racketeers discovered a ready market for any piece of metal that can be melted in furnaces.

Mr Lucas Aminieli Lyimo is one of the agents of Trishalla. "We have our own organization known as Tambaana Arusha Limited. Business is going on very slowly as there are no scrap metals in Arusha," he said.

Trishalla Rolling Mills operating on 9 acres of hectic iron and steel work factories recycle products such as round bars, deformed bars, square bars, twisted bars, flat bars and zed bars.

The plant also churns out angled iron, hollow sections, mild steel plates and black pipes, constructors should be conversant with these terms. Established in 2003 before going commercial a year later, Trishalla Rolling Mills produces between 30,000 and 35,000 tons of finished metal products every year and much of this is sold locally.

The factory exports about 20 per cent of the merchandise to Kenya. Production and exports could always be doubled or even tripled if raw materials were readily available. "There is still ample untapped market in East and Central Africa," stated Mr Manoj.

Tanzania currently has thousands of motor vehicles on her roads, with many being written off daily. Why didn't Trishalla think of tapping into this source of potential raw material?

"Only a small section of scrap cars can be put into use, you see our factory deals with mild steel," he says.

"Modern vehicles are made up of mostly alloy and plastic with few real metal parts, still we can make use of them," he said, adding that with the recent introduction of canned drinks, soda , fruit juices and scrap metals, dealers can also tap into this segment of raw materials," he maintained.

"We clean up the municipality while creating employment and realise revenue in the process," said Mr Manoj. His staff is mostly trained on job; some have since developed into highly skilled metal apprentices.

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