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Fertiliser producer Sable Chemicals is set to resume production next month and is targeting to produce at least 25 000 tonnes of Ammonium Nitrate (AN) fertiliser by December, chief executive Mr Bothwell Nyajeka has said.
He said the company was now preparing to produce fertiliser for the 2019-2020 farming season and required about US$12 million to import raw materials to meet national demand.
Responding to questions from The Herald, Mr Nyajeka said the company stopped production due to shortage of raw materials in June, but was expected to resume production next month.
“We are resuming normal production this October after we received another batch of US$1,5 million,” he said. “We earlier on received another US$2,5 million and we are hopeful that it will take us far. We are targeting to produce about 25 000 tonnes of Ammonium Nitrate between now and December.”
Mr Nyajeka said the company required more funding to meet its target.
“Currently, the company is operating way below capacity owing mainly to a national shortage of foreign currency which is curtailing the importation of ammonium gas from South Africa,” he said. “As you know, this is an important component of our production. In total, we might require a total of about US$12 million for our production to normalise.”
Mr Nyajeka said the company managed to produce only 7 000 tonnes of Ammonium Nitrate from January to June owing to a shortage of the ammonium gas.
He said the company’s annual target was 90 000 tonnes when all raw materials are available.
Mr Nyajeka said despite the challenges, the company was working on plans to increase production in the long term.
“The expansion plans involve retooling and doubling the number of rail track cars used to transport ammonium gas from South Africa,” he said.
Online Reporter