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Business Writer
Lying idle for almost a decade, Brainman Investments, has set eyes to transform Zimglass, the country’s sole glass products producer from a heap of scrap.
Zimbabwean companies and individuals have been facing torrid time securing glass both for domestic and industrial processes, forcing majority of them to import using scarce foreign currency.
Although Brainman is looking forward to changing the complexion of Zimbabwe’s glass industry, the firm admits it will be a tall order.
“There is little that can be salvaged from the existing plant and we have to start from scratch,” Douglas Kwande, the owner of Brainman told The Sunday Mail Business.
“What is there is rustling; dilapidated equipment that is beyond repair and needs to be replaced. This will involve huge amount of money but we are ready to go.”
Brainman acquired Zimglass, previously owned by the Industrial Development Corporation of Zimbabwe for $22 million, paving way for the revival of the company that used to make the bulk of the country’s glass materials for bottles of beer, soft drinks, food, pharmaceuticals among others.
The company ceased operations in 2010 and has been failing to secure funding for recapitalisation, leading to its placement under judicial management in 2014. It was later put under liquidation.
At that time, its creditors amounted to US$34 million.
About US$10 million is required to revive the plant, according to liquidator Mr Winsley Militala. It’s most valuable asset is Industrial Sands, a company which holds vast concessions of the resource needed to produce glass.
The closure of Zimglass saw the country importing all its glass requirements after several efforts to bring in new investors failed to materialise.
All container glass is now being imported with companies such as Delta Corp and AfDIS buying from as far afield as Dubai and Egypt.
In the 10 months to October last year, Zimbabwe imported various glass products worth nearly US$12 million, according to figures from the Zimbabwe National Statistical Office.
Some of the companies, which previously expressed interest in buying the Gweru-based glass making plant include Nampak, Kioo Ltd of Tanzania and Mauritius-based Sahara.
Alternative Investment Africa and Global Emerging Markets — a major shareholder in RioZim, once expressed interest in Zimglass.
Kwande said “a lot of work” was already underway to bring back the factory to life including acquisition of new equipment including furnaces.
“There is a lot of work going on behind the scenes but it’s unfortunate that with global travel restrictions due to Covid-19, our team has been unable to go to China to assess the equipment and appreciate the products being produced by such equipment.
“We do have the quotations and it seems we need as much US$20 million in new equipment,” said Mr Kwande, whose business interests also include retail, farming, baking and milling said.
Funding
A lot of financial institutions have expressed interest to fund the revival of Zimglas given its potential.
“Funding will definitely not be a challenge because many banks are already knocking on our doors,” Mr Kwande said. “We are determined to see the plant work again, create jobs and reduce glass imports.”
Zimglass has retained some of the workers, especially the technical staff who are already on its payroll.
The company was incorporated in 1963 as a subsidiary of Consol Glass and became an IDC company in 1984. It is situated in Gweru, the Midlands Provincial Capital.
However, with the adoption of plastic technology for making containers, it appears Brainman needs serious innovation to secure alternative glass use from the traditional ones.
During its long absence from the market, many companies embraced a number of substitutes and that will make the firm’s market penetration a beat difficult.
Online Reporter