Engineer Siyaniso Mukonoweshuro said introduction of the Chinese engine would lower production costs by 50 percent while production capacity would surge. “But the product remains reliable and competitive. By June work on the new model will start. We have looked into the specifications of the engine and they can do well on the local market,” he said. He added that the company would also be upgrading its workshop to increase production to one bus per day by year-end, up from the current seven per month.
“This will also see our labour force increasing to 1 000 from the current 200 because we will be working 24 hours,” he said.
Eng Mukonoweshuro refused to identify the supplier save to say that the type of the Chinese engine would be the first of its kind in Zimbabwe.
He lamented the liquidity crunch in the country saying loans being availed remained expensive and short term, making them unsuitable for expansion and retooling purposes.
“Local money is very expensive at an interest rate of 20 percent. We urge the Government to intervene and assist the manufacturing sector regain its former glory,” he said.
AVM Africa was established in 1961 as AW Dahmer. — New Ziana.
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