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Business Reporter
Sino Zimbabwe Cotton is in negotiations with a local company to purchase at least 35 000 hectares of land for cotton farming, a senior company official said.
The company plans to increase cotton seed and lint output to 35 000 metric tonnes at its $17 million plant commissioned by President Robert Mugabe in December last year hence its decision to venture into cotton farming.
In an interview with the Herald Business yesterday, Sino Zim Cotton chief operating officer Mr Thomas Meke said the company is looking at exploring opportunities that enhance its presence on the local market.
“Sino Zim purchased new spring reels and weavings for the plant with the idea of increasing the current capacity of 25 000 tonnes of cotton seed and beneficiation by 17 percent.
“We are currently in negotiations with a local company with an intention to purchase of at least 35 000 hectares of land because we are intending to venture into cotton farming,” said Mr Meke.
“Sino Zim is going to continue funding contract farming despite its intentions to venture into cotton farming and currently were are still signing some MOUs, therefore we cannot disclose the identity of the company that we are engaging.”
Sino Zim is in the process of installing new equipment to increase capacity and beneficiation and so far the company has successfully purchased springreels and weavers from a local company, Scotto.
Mr Meke said they are also finalising a lease agreement with Scotto on the possibility of using the premises where the weaving plant is currently situated to avoid dismantling it.
He said Sino Zim needs about $1,5 million to recapitalise though the company is currently using internal resources to fund its operations.
“We are bringing in new equipment at the plant because we are optimistic of achieving good results at the end of the current selling season.
“We expect the initiative to increase capacity of our cotton seed production. Installation is in progress right now,” he said
Mr Meke could not disclose the cost of purchasing the new equipment.
The company has lined up projects at the milling and spinning plant to support value addition and beneficiation in the cotton industry in support of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.
The plant’s spinning division is promoting value addition through production of high quality yarn for both domestic and international markets in Africa, Asia and Europe.
Mr Meke said the company’s primary objective is to promote cotton production and ensuring farmers have equal and free access to high quality inputs at viable and sustainable prices.
Since the company’s inception in 2009, it has made great strides in penetrating the once monopolised market and established an ever growing niche since then.
The company is looking at doubling its 30 000 spinners capacity depending on the supply of cotton in the country.
Mr Meke remains confident of positive results despite the prevailing challenges of side marketing being done by some of the farmers contracted to the company.
He said companies that did not take part in providing inputs to farmers are now at the forefront of dictating prices, creating an uneven playing field.
The company was established in May 2010 as a joint venture company between Zimbabwe and China.
Online Reporter