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Steel & Tube targets local iron ore production to reduce reliance on imports

Steel & Tube team at CHADA as platinum sponsors. Kampala, Uganda | THE INDEPENDENT | Steel & Tube Industries Limited is exploring opportunities to develop a domestic iron ore supply chain as part of efforts to reduce its dependence on imported raw mate…

Steel & Tube team at CHADA as platinum sponsors. Kampala, Uganda | THE INDEPENDENT | Steel & Tube Industries Limited is exploring opportunities to develop a domestic iron ore supply chain as part of efforts to reduce its dependence on imported raw materials and expand local steel production. The company disclosed its plans during the Construction Hardware Dealers Association (CHADA) Convention 2026, where manufacturers, hardware dealers and government officials discussed product quality, local sourcing and the role of the construction sector in Uganda’s industrial development.

Steel & Tube has secured a licence from the Ministry of Energy and Mineral Development to undertake mineral development activities in Kanungu District, where it intends to explore the feasibility of processing locally sourced iron ore into steel products. The proposed investment would involve mineral beneficiation to improve ore quality, followed by ironmaking, steelmaking and casting to produce steel billets, which are used in manufacturing products such as reinforcing bars. The project remains subject to technical and commercial feasibility assessments but could enable the company to source more of its production inputs locally while adding value to Uganda’s mineral resources.

Speaking at the convention, Oscar Kamukama, Steel & Tube’s Head of Marketing, said the company was responding to changing market demands through product innovation, quality improvement and engagement with customers. “Steel & Tube listens closely to the market. Through customer visits, expos, exhibitions, forums, workshops, conferences & other engagements, we hear directly from the people who use & sell our products.

We take that feedback seriously & use it to develop practical solutions,” Kamukama said. “We listen to the market, then respond to what it needs. That approach has helped Steel & Tube Industries make significant headway in developing products & services that meet the changing needs of Uganda’s construction sector.” Established in 1985, Steel & Tube operates manufacturing facilities covering approximately 50 acres across Namanve, Kazinga and Nakawa.

The company says it directly employs more than 1,600 people and supports over 8,000 indirect jobs. Its products are distributed across Uganda and regional markets, including Kenya, South Sudan, the Democratic Republic of Congo, Rwanda, Burundi and Tanzania. The company has expanded its product range to include TMX B500 reinforcing bars, stainless steel water tanks, wheelbarrows, hoop iron, expanded metal and pre-engineered buildings.

It also manufactures customised trailers using high-grade steel. Kamukama said maintaining product quality and improving customer service remained central to the company’s strategy as competition in the construction materials market increases. “Quality matters, but service is what turns a good product into a lasting customer relationship.

At Steel & Tube, we work to deliver both simultaneously,” he said. The company reports having supplied steel products for several major infrastructure developments, including the restoration of Katonga Bridge following its 2023 collapse, the expansion of Entebbe International Airport, the Kampala Flyover and the Karuma Bridge. Other projects it identifies include NSSF Pension Towers, Kabalega International Airport, the Uganda Cancer Institute and the Hoima City National Stadium, where it collaborated with Roofings Group.

Government pushes for quality and local manufacturing Addressing the convention, Minister of State for Trade Wilson Mbadi urged manufacturers and hardware dealers to prioritise locally manufactured construction materials while maintaining product standards and fair competition. “Every home, school, hospital, road, and factory begins with the materials provided by this sector,” Mbadi said. He warned industry players against price fixing, noting that violations of the Fair Competition Act could attract penalties of up to 10% of annual turnover.

Mbadi also highlighted Uganda’s housing deficit, estimated at 2.4 million units and increasing by approximately 200,000 units annually, as an indication of the growing demand for construction materials. He urged manufacturers and dealers to reject substandard products and support domestic manufacturing to strengthen the country’s industrial capacity. For local steel manufacturers, however, expanding production also requires addressing the cost of imported raw materials and developing reliable domestic supply chains.

Steel & Tube’s proposed iron ore project in Kanungu forms part of its strategy to integrate more stages of steel production locally, although its implementation will depend on the technical and commercial viability of the mineral deposits and proposed processing facilities. The company is also seeking to expand its presence in regional markets while developing products for Uganda’s growing construction and infrastructure sectors. Following its participation in the CHADA Convention, Steel & Tube plans to showcase its products and manufacturing capabilities at the upcoming Uganda International Trade Fair.

The exhibition will provide another platform for the company to engage potential customers and partners as it pursues investments in local sourcing, product development and regional market expansion

Source: The Independent Uganda

Distributed to Politics · London Sun by RedPress.

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