Lancashire revival needs $19m more

Michael Magoronga Midlands Correspondent
Lancashire Steel needs an additional $19 million to ensure the smooth running of its operations, the company’s general manager Mr Ezekiel Machingambi has said.

Hopes were high that the company, which stopped operating in 2010 due to operational challenges, was about to resume operations after receiving a $2 million bailout from Government through Zimbabwe Asset Management Corporate (Private) Limited (ZAMCO).

Mr Machingambi said the $2 million was approved in 2017 when the rate of the local unit was still at par with the United States dollar but was only released when the rate had been floated.

He said besides a few “sticking issues” that were being attended to by Government, they have since written requesting an additional $19 million so that the company returns to full production.

“In terms of our revival budget, we had budgeted for raw material as well as capital equipment, but a lot of movement in terms of pricing has taken place. We therefore have revisited our figures, after the old prices were overtaken by events,” he said.

He said although the company received its first truck load of raw materials imported from South Africa, there is a lot of refurbishments that need to take place at the plant before operations begin.

“We received about 29 tonnes of semi processed galvanised wire from South Africa. We are still expecting to secure the bigger chunk of our consignment which will comprise of wire rods, galvanised wire and so on.

“But there is some extensive repair work that needs to be done before we are able to start operations earnestly,” said Mr Machingambi.

He urged Government to give the company due recognition saying it was a vital cog in the economy revival strategy.

“The revival of Lancashire Steel is very important in terms of not only creating employment but also on improving production in the wire manufacturing industry.

“The company supports a lot of downstream companies if fully operationalised. For example, if revived, the company can become the sole supplier of wire rod in the country. We see a lot of potential in terms of scope, we are therefore saying government should give the company high priority in terms of funding,” he said.

The company is set to employ about 100 workers in the first phase of its revival stages before ramping up the workforce as production increases.

The company has a capacity to employ about 520 workers when fully operational.