US$100m tobacco value-adding plant nears completion

Source: US$100m tobacco value-adding plant nears completion | The Sunday Mail

Zimbabwe has been exporting 98 percent of tobacco in raw form, thus transferring jobs and value to other countries

Sunday Mail Reporter

VALUED-ADDED tobacco products and exports are set to grow three-fold as a multi-million-dollar cut rag tobacco manufacturing plant being built in Harare is now 95 percent complete.

The Cut Rag Processors (Pvt) Ltd manufacturing plant, worth an estimated US$100 million, is expected to be officially opened in three months.

Cut rag tobacco refers to tobacco that has been cut into fine, thin strips, ready for use in cigarettes or other tobacco products.

In an interview with The Sunday Mail recently, Cut Rag Processors managing director Mr Leslie Malunga said the facility, located in Harare’s Lochinvar industrial area, will transform the country’s tobacco industry.

“The building is almost 95 percent complete,” he said.

“Currently, the guys are installing machines for the plant, of which about 80 percent of this has been mounted so far.

“We are in the testing phase with the machine suppliers. Once we have tested them, we should be able to commence production. By June, production should commence, but sometimes you never know with suppliers; things can progress faster and it could be earlier.

“But just from a prudent perspective, we should be able to commence production in the facility around June.”

Zimbabwe has been exporting 98 percent of tobacco in raw form, thus transferring jobs and value to other countries.

Mr Malunga expects the firm to significantly boost processed tobacco exports and strengthen local markets.

“In terms of capacity, I think it’s almost triple what we have now, and we intend to grow the local market.

“We intend to look for more cut rag exports where there is opportunity to export cut rag because it gives value addition to the tobacco that we produce locally.

“So, I think that is one of our key areas in terms of value addition of tobacco into cut rag and export of cut rag within the region and beyond,” he said.

After the plant’s opening, Mr Malunga said the company planned to explore Asian and other international markets.

“Asia is one of the biggest markets, so obviously in terms of exploring, we will be exploring such markets. We will also pursue regional markets,” he said.

“With the state-of-the-art plant, we should bring more efficiencies and with more efficiencies, it should be able to add value to the customer’s supply chain from where they are getting their cut rag.”

The plant, Mr Malunga said, will result in a superior tobacco product.

“I think, besides increasing capacity to serve customers, one of the biggest things is just the quality. We will be able to compete with other players because of the quality that will be coming out of the plant,” he said.

Last year, the Government said it had adopted a programme to create an enabling environment to improve value addition of tobacco from 2 percent to 30 percent.