Zimglass set to resume operations in April

GWERU- The country’s sole glass manufacturer, the Zimbabwe Glass Industries (Zimglass) is set to resume operations in April after the company secured funding to refurbish its furnaces.

The Gweru-based firm shut down operations last September, leaving 472 permanent employees and 100 contract workers stranded. Zimglass had battled to secure funds to resuscitate operations due to the liquidity crunch rattling the country’s economy.

The Industrial Development Corporation, its parent company, has however, succeeded in courting investors to inject US$7 million into the glass manufacturer to refurbish its furnaces. Jacob Dube, the company’s managing director, said production would resume in April after the commissioning of the furnaces.

“After a protracted process of raising funds for the furnace rebuilding and refurbishment of plant and equipment, the company should resume production in April this year. The commissioning of the furnace takes about two weeks, allowing for all the fine tuning and glass conditioning to be completed. Glass making is a continuous intricate process, which takes patience and skill,” said Dube.

“The refurbishment and furnace rebuild does not take a long time but it’s the manufacture of the materials required to do so that takes long: That is glass forming machines, glass contact refractories etc and the shipping of these once manufactured. Glass making machinery, glass contact refractory and glass inspection machines materials are made in Europe, Asia, the United States and the lead times are up to 10 months from date of payment.”

The major cause of the delay was, he added, due to lack of capital. “It must be remembered that at the introduction of the multicurrency regime we were all reduced to (ground) zero. It took us more than 15 months to raise the required finance to be able to place orders with the suppliers.

“It was a most debilitating period of our project implementation. It is common cause that many companies have suffered a great deal because of this illiquid situation in the country that has resulted in several companies failing to resume operations”, Dube told The Financial Gazette’s Companies and Markets.

Read the full story below.

600450 Zimglass set to resume operations in April glassonweb.com
Date: 2 February 2012
Source: www.financialgazette.co.zw

See more news about:

Others also read

A leading lubricant manufacturer has announced a new brand name for its glass lubricants range.
When in 2017 glasses will be raised in Turkmenistan to celebrate the successes during the 5th Asian Games, Horn Glass Industries AG will already have won its own competition.  For the bottles which will be drunk from, will come from the plants by the company located in Ploessberg.
Orora Limited (ASX:ORA) announces it has committed to invest $42 million in additional glass bottle forming lines at its Gawler, South Australia, glass plant.
Until October 2014, Lawrence didn’t have a citywide curbside recycling program. But it sure had a lot of glass bottles.
Juniper Glass Industries Plc is to open a factory on 12ht of land in Debre Birhan with a 50 million-dollar capital outlay.
The Contract for a new Batch Plant and a new Cullet Return System for F3 has been awarded to EME Maschinenfabrik Clasen GmbH, a leading provider of Batch Plants and Cullet Return Systems for the glass industry, by Wellgrow Glass Co.

Add new comment