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Dumisani Nsingo, Senior Business Reporter
CHEMPLEX Corporation Limited has secured an additional $$2.5 million loan to meet increased costs of the upgrading of its subsidiary Zimbabwe Phosphate Industries (ZimPhos)’s sulphuric acid plant.
Chemplex Corporation chief executive officer Mr Tapuwa Alvin Mashingaidze said the refurbishment work at ZimPhos was progressing well despite delays in the allocation of foreign currency for the purchasing of various materials to be utilised in the rehabilitation process.
Zimphos, which manufactures phosphate fertilisers, is a subsidiary of Chemplex Corporation that is wholly owned by the Industrial Development Corporation, a parastatal.
“The refurbishment work at ZimPhos is progressing well despite some occasional delays due to the timing of forex allocations. Thanks to RBZ (Reserve Bank of Zimbabwe) support work is around 35 percent complete and we now expect the project to be completed during the fourth quarter of next year,” said Mr Mashingaidze.
The rehabilitation of ZimPhos’ sulphuric acid plant requires $7,5 million. The company traditionally manufactures sulphuric acid but at the moment it is importing awaiting the refurbishment of its plant.
“An additional $2.5m loan is being disbursed to meet an increased cost of the project due to an upgrading of the technology to be used to ensure the lowest possible emission levels and highest efficiencies in line with the latest global standards,” said Mr Mashingaidze.
Sulphuric acid is also used at ZimPhos for the manufacture of Aluminium Sulphate for municipal water treatment as well as for sale to other industries such as the battery manufacturing and mining industries. Mr Mashingaidze said research and development for the manufacturing of a cheaper locally manufactured Aluminium Sulphate were ongoing.
“Research and Development work to identify cheaper local raw materials for Aluminum Sulphate manufacture has been ongoing and is now at an advanced stage. This will enable production of a wider range of product quality including iron free alum sulphate as required by some customers. There may, however, be efforts by others to make either alum or other water treatment chemicals. Chemplex is always eager to collaborate with local universities, researchers and innovative entrepreneurs to develop these ideas and offer the market better products,” he said.
Mr Mashingaidze said the company was working on meeting the local market demand of phosphates, fertilisers and water treatment chemicals.
“Chemplex strategy in the short term is to utilise its huge capacity to competitively and profitably meet the full requirements of the domestic market for phosphates, fertilisers and water treatment chemicals in a sustainable manner to meet the needs of its stakeholders,” he said.
The company has also set sights at expanding its product range and exploring the export market.
“In the medium to long term Chemplex is pursuing growth firstly through expansion of its product range for example to include high analysis phosphatic fertilisers and other modern chemicals and formulations for a wider range of markets including for the mining sector. In addition the company is expanding into the region through not just exports but establishing a permanent presence in selected countries around us,” said Mr Mashingaidze. -@DNsingo
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