Chronicle Editor
Oliver Kazunga, Senior Business Reporter
WET Blue Industries, which recently came out of judicial management, is set to undergo a major retooling exercise as part of efforts to improve its operational efficiency.
In May this year, creditors of Wet Blue industries were reported to have approved a resolution to rescind the firm from judicial management following the takeover of its parent firm, Cold Storage Company (CSC) by Boustead Beef Zimbabwe.
The takeover deal meant that the country’s largest meat processing company was resuming operations under a new name, CSC-Boustead Beef Zimbabwe.
Cabinet approved a joint venture agreement between CSC and Boustead Beef resulting in the new investor making a commitment to inject US$400 million towards the revival of the firm.
In separate interviews, CSC-Boustead Beef Zimbabwe managing director Mr Nick Havercroft and a senior executive Mr Isaiah Machingura confirmed the coming out of judicial management of Wet Blue Industries before referring further questions to Mr Reginald Shoko, CSC-Boustead Beef Zimbabwe consultant.
Mr Shoko said Wet Blue Industries was undergoing a retooling exercise to improve its operational efficiency as the company’s existing machinery was antiquated.
“It’s also undergoing retooling and refurbishment of the whole plant because the existing equipment is old,” he said without saying further details.
Once Zimbabwe’s largest tannery, Wet Blue Industries used to process between 18 and 25 tonnes of leather a month for export on behalf of CSC, which was also the country’s biggest abattoir. The tannery was placed under judicial management in 2014 after business went down following the collapse of CSC.
Meanwhile, Mr Shoko said engineers were also on the ground stripping old equipment at CSC-Boustead Beef Zimbabwe main plant in Bulawayo ahead of installation of new technology at the factory.
“Right now, a team of engineers is on the ground stripping old technology that comprises compressors among others, replacing them with latest technology,” he said.
CSC-Boustead Beef Zimbabwe, which recently took delivery of a consignment of solar panels and other ancillary equipment worth millions of United States dollars, intends to start installing the panels next month.
The company, which is expected to resume operations next year would install a 3MW solar photovoltaic plant to the tune of US$9 million to alleviate operational inefficiencies due to power challenges facing the country. @okazunga
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