Uganda has innate advantages in developing iron and steel industry. For example, Uganda has abundant high-grade iron ore resources and its strategic geographic location radiates to the surrounding countries. Especially with the rapid development of urbanization in Uganda in recent years, infrastructure projects have led to the growth of steel demand and brought opportunities for the development of local steel industry. But at the same time, Uganda's development of iron and steel industry also has some difficulties, such as lack of metallurgical coal resources, high power and energy costs, excessive dependence on imported materials and production equipment and technology, slow progress in mineral development, lack of skilled human resources and poor product quality.
Uganda's iron and steel industry has about 5,000 employees, with an annual capacity of 1 million tons and an annual capacity utilization rate of 50.17%. The annual steel output is about 517,000 tons, of which 32.89% (165,000 tons) is produced by local scrap steel or iron ore, while the remaining 67.11% (485,200 tons) is produced by imported materials. The imported steel materials mainly include Hot rolled coil, galvanized coil, steel wire, billet, cast iron, scrap steel, etc.
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