Zimglass suspends production | The Herald

via Zimglass suspends production | The Herald November 18, 2013

ZIMBABWE Glass Company, the country’s sole flint glass producer has temporarily suspended production due to inadequate raw materials, Zimglass acting chief executive, Mr Gilbert Tapfuma has said. Speaking during Industry and Commerce Minister Mike Bimha’s tour of Zimglass on Friday, Mr Tapfuma said the cash-strapped Zimglass has been failing to source raw materials resulting in the company temporarily suspending production.

“We have limited working capital and as a result we have not been able to get the raw materials as and when we want them. We are appealing to Government to avail funds to support industry. We are also experiencing a decline in demand since we only have Delta as our main consumer,” he said.

Mr Tapfuma said Zimglass was working on identifying new markets in the region with the main target being Zambia where there is high demand of flint glass which is used to bottle soft drinks.

“We are now working on exploring other avenues by targeting regional markets such as Zambia, Mozambique among other countries in the southern African region so that we raise enough capital,” he said.

Zesa recently disconnected power supply to Zimglass over an outstanding bill.

It was, however, reconnected after Midlands Minister of State for Provincial Affairs, Cde Jason Machaya negotiated with the power supply company.

The Gweru-based company recently resumed production of flint glass and was set to produce about 12 600 tonnes of the product between October and March next year.

The company suspended operations in September 2010 to embark on a refurbishment exercise of the blast furnace as well as replace outdated equipment.

However, the company failed to finish the exercise in the set six months owing to the liquidity crunch and this led the company to close shop for almost two years.

Zimglass received a US$7 million capital injection from parent company, Industrial Development Corporation of which US$5,5 million was supposed to go towards the completion of the refurbishment exercise while US$1,2 million would be working capital.

 

COMMENTS

WORDPRESS: 6
  • comment-avatar

    Another one bites the dust! Here’s another ZANU-PF success story!

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    nyati 8 years ago

    The culture of permitting bankruptcy is sad when it affects the private sector.
    Mr CEO wat car are you driving. How much fuel are you using every month? Allowances etc etc.
    (I was reading about MPs and cabinet ministers who are going to get (us)$30m worth of cars only. )
    Have you ever found out who your buyer is and what his life style is like. Do not rush to saying “give us money to recapitalise ” iwe wati hauchina market. Hey are you serious my fellow countrymen?
    Reading stories like this makes us look like clowns.
    We need prayer for Zimbabwe.

  • comment-avatar
    Diego Zhaba 8 years ago

    That’s the order of the day. This leadership will not stop at anything till every sector of the economy is grounded to a halt. May ZANU spare us the wroth.

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    Shebah 8 years ago

    ZIMGLASS should diversify into plastic. Glass is no longer environment friendly and I am sure EMA would be happy for the production stoppage

  • comment-avatar
    chilimanzi 8 years ago

    The most scary thing is even if you access your own funds you risk it being taken off you even the courts will rule againist you RAMBAYI MAKASHINGA.

  • comment-avatar

    haa achiri mavambo muchachiona chakapara hanga musoro?