Tembo Steels Uganda has played a pivotal role in the Uganda steel industry. Since its inception in 2000, Tembo Steels has been a leader in steel manufacturing in Uganda, pioneering innovations like TMT bars production and lightweight structural steel.
The company is the sole provider of primary steel production in the country, utilizing Directly Reduced Iron (DRI) to ensure high-quality products while setting benchmarks for purity and strength.
Tembo has pioneered Uganda’s steel industry trends, its transition from reliance on secondary steel production to a more advanced, value-added model. Despite challenges from foreign competition, such as Chinese imports, Tembo Steels has maintained its competitive edge by innovating and expanding its production capacities, including a soon-to-launch DRI plant.
Sustainability is at the heart of Tembo Steels’ operations, as it drives green steel practices in Uganda. The company has achieved a carbon emissions matrix close to 70%, far exceeding global averages.
Sanjay Awasthi, CEO of Tembo Steels Uganda has always emphasized the need for collective action in reducing CO2 emissions, especially as Uganda steel manufacturers strive to align with international sustainability standards.
In addition to its industrial achievements, Tembo Steels is deeply committed to corporate social responsibility in Uganda, contributing to healthcare and environmental initiatives. From producing oxygen during the COVID-19 crisis to conducting extensive plantation projects, the company underscores its dedication to community well-being.
Tembo Steels is setting global benchmarks in sustainable steel production, reinforcing its leadership in the Uganda steel market while continuing to innovate and support the country’s economic growth.
Tembo’s journey began in 2000 when they pioneered the production of TMT bars in Uganda. TMT, which stands for thermomechanically treated bars, are high-strength, flexible bars that enable steel savings of around 15-20% in high-rise buildings due to their strength.
In 2008, they expanded into structural steel production in Uganda. They now operate two manufacturing units—one in Iganga and another in Lugazi . Uganda recently began producing Directly Reduced Iron (DRI), which serves as their main input material.
One of their DRI plants, with a capacity of 100,000 tons per annum, has been operational since 2018, while a second plant with a 250,000-ton capacity was launched early this year. Combined, these units provide a capacity of 350,000 tons, making them the only primary steel producer in Uganda.
In addition to TMT bars for high rises and dams, they produce structural steel for fabrication, HRC for hot welded sheets, and wire rods, a facility they were the first to introduce in East Africa. With their expanded facility they now achieve a wire rod production capacity of 300,000 tons, structural steel capacity of 150,000 tons, and a crude steel capacity of approximately 600,000 tons.
In terms of product diversity, they lead the continent in the variety of combustors and substrates we produce—offering an unmatched range across Africa.
The steel industry in Uganda is thriving, with close to a dozen steel plants operating. These plants are primarily in the secondary and tertiary sectors. Uganda’s total installed steel production capacity is nearly two and a half million tons.
In secondary steel production, value addition ranges from 50% to 100%, with companies starting at different levels of value addition. Some begin at 50% and go to 100%, while others start at 30% and progress up to 70%. These varying levels of value addition create distinct segments within Uganda’s steel industry. Primary steel production, though new, is anticipated to mature over time.
Tembo is the only primary steel producer in the country, which gives them an inherent advantage in steel purity. Primary steel production, using virgin iron ore, avoids residual elements found in scrap melting. These residual elements can weaken overall quality, affecting strength and ductility. Their position as the sole primary steel manufacturer ensures a superior product.
In 2004, Tembo started converting cast iron into liquid low carbon steel for Africa. At that time, no other company in the world was undertaking this conversion. They identified a need for an alternative raw material in steel manufacturing, as the only available option was mild steel scrap. Many companies were melting mild steel scrap to produce structural steel profiles, TNT bars, and wire rods.
They recognized the opportunity to use cast iron, which was abundant, as a raw material. Although cast iron contains nearly 4% carbon, making it challenging to process, they saw its potential. Tembo successfully developed a method to convert cast iron into liquid mild steel, which can be utilized in secondary steel making. This achievement positions Tembo Steel as the first converter in the world to transform cast iron into liquid low carbon steel.
Additionally, Tembo Steel is associated with other global benchmarks. They manufacture the lightest structural steel in the world, ensuring that structural profiles used in fabrication do not compromise strength and ductility. They optimized the design without sacrificing performance, allowing them to proudly claim their position as the manufacturer of lightweight structural steel section profiles globally.
Tembo engages in various philanthropic activities, such as participating in cultural events directly related to cancer, charity, and patient support, including eye surgeries. They are involved in many projects through these cultural events. Thier budget for this is close to $150,000 per annum, which supports our other initiatives. They also operate the largest oxygen facility in the country. During the COVID-19 pandemic, there was a scarcity of oxygen, which became essential for saving lives. This is where they contributed significantly. Additionally, they provided a brand new system that facilitated care during that time. They frequently supply hospital beds, targeting 500 beds annually. They also conduct extensive plantation projects in and around the hospital and are fully committed to corporate social responsibility.
Regarding green steel, there is a global awareness of the need to reduce carbon emissions. This is a pressing issue today. In the steel industry, primary steelmaking emits approximately 2.2 tons of CO2 per ton of steel produced. About 70% of total steel production comes from blast furnaces, which are the primary method of steelmaking. There is also a secondary process using scrap, but this has limitations due to availability and quantity.
To address the need for a greener future in steel production, the industry must contribute collectively. The total impact of the steel industry accounts for about 78% of emissions, and everyone must work towards a more sustainable tomorrow.
Tembo is among the few companies globally that practice green steel production. We have achieved a carbon emissions matrix close to 70%, placing us in an elite category within the primary steel sector. The worldwide average for green steel production is approximately 40%, while Europe averages around 45% and the USA around 55%. Tembo Steel Uganda Ltd. has achieved a matrix close to 70%, which I consider phenomenal.