IDC courts foreign investors for plant

Lovemore Zigara Midlands Correspondent
THE Industrial Development Corporation (IDC), which wholly owns the country’s sole flint glass manufacturer, Zimbabwe Glass Industries (Zimglass), has turned to foreign investors in its bid to resuscitate operations at its Gweru plant.
Zimglass is one of the nine companies which IDC intends to shed off in order to raise fresh capital to rejuvenate some of its viable companies.
The Gweru-based glass manufacturer ceased production in the fourth quarter of last year amid a myriad of challenges, chief among them failure to secure working capital to sustain its operations.

IDC group public relations advisor, Derek Sibanda, said the liquidity challenges prevailing in the economy had seen the corporation courting foreign investors to take over the ailing glass manufacturer.

“Finding a financier is a process and we are still looking for an investor to take over operations at Zimglass. You would appreciate the liquidity problems in the economy which means local companies do not have the capacity to take over a project of such magnitude, hence we are now looking at foreign investors to come on board,” he said.

At its peak Zimglass used to be a major supplier to players in the alcoholic beverages, sparkling beverages, food and pharmaceutical industries.
Sibanda said as soon as an investor was found, IDC would engage financial institutions owed by the glassmaker with a view to offsetting its debt.

A consortium of local financial institutions are owed about $8 million which was extended to the glass manufacturer for the building of Zimglass’ G2 blast furnace and for the procurement of glass making equipment.

Zimglass requires $15 million to recapitalise its operations and AfrAsia Kingdom has been appointed the financial advisors for the exercise.
The company has only four workers reporting for duty to man the blast furnace while others were sent on forced leave.

The 400 strong workforce is still to receive their dues since July last year.
The company has capacity to operate two furnaces but only one furnace G2 is operational. The other furnace G1 is currently mothballed and awaits refurbishment to improve production systems and product range.