IDC in talks with partner over WMMI

IDC in talks with partner over WMMI | The Herald April 11, 2016

THE Industrial Development Corporation (IDC) says it has in principle secured an international partner for Willowvale Mazda Motor Industries (WMMI) who has both financial and technical capacity. IDC chief executive Mr Mike Ndudzo in an interview said it was too early to divulge the details, but an investor had expressed his intention. “At Willowvale, we think we have found a strategic partner. We are within the parameters of his statutes both on policy and at an operational level.

“We can’t divulge the details at the moment but we think we have found someone with financial capacity to partner and restructure the company,” he said. The WMMI which is currently not assembling, stopped production in 2012 when capacity plunged to below 4 000 units from a peak of 18 000 vehicles per year in 1997.

Willowvale is controlled by Motec Holdings, which in turn is 75 percent controlled by the State-owned IDCZ and 25 percent by Itochu of Japan. Last year, Chinese car manufacturer Foton Motor Group was said to have expressed interest to invest in excess of $200 million in Zimbabwe’s two motor vehicle assemblers Willowvale and Quest Motors.

The Foton Motor delegation visited both Willowvale Mazda Motor Industries and Quest Motors and indicated an interest to put an initial $200 million investment on the plants. IDC has over the years planned to dispose of its shareholding in nine subsidiaries and associate companies as part of the company’s three pronged strategy to reduce, sell-off and entrench its positions.

The company requires significant fresh capital in excess of $104 million in the short term to recapitalise its operations, but raising the funds has been challenging due to the current liquidity situation in the economy.

Mr Ndudzo said in the absence of investors, the group switched to other plans which involve keeping and turning around the companies using internal resources. He added that the group also has a responsibility to keep the companies operational and restructure them to make attractive. At Sunway City Park, Mr Ndudzo said residential stands at Phase Five are already available for sale.

He said there has been a huge uptake of space on the industrial site, but the promulgating into law of the Special Economic Zone Bill which will bring in incentives for would be tenants, is the future of the park.

“Residential uptake is very high; we are almost exhausting all developed stands. On the industrial side, more than 60 companies are already present with the likes of PPC, shoe factories, smelting companies, tile making, Vaka Africa among others,” he said. Mr Ndudzo said the immediate future is the ICT hub which is waiting for the SEZ Bill. — Wires.