Allied Timbers eyes $30 million loan deal

Allied Timbers eyes $30 million loan deal
Published: 29 January 2018 (287 Views)
Allied Timbers Zimbabwe is close to sealing a vendor finance transaction with Belarus that will see the country's largest timber company receiving equipment worth $30 million.

The deal, likely to be closed during the first quarter of this year, is expected to put the company on a recovery trajectory following several years of under performance resulting from mismanagement.

The facility is part of several loans Zimbabwe is getting from the Eastern European country to support productive sectors. Some of the companies that have benefited include Hwange Colliery Company Limited while negotiations were ongoing with various other state enterprises.

About two weeks ago, officials from Belarus where in the country for a famirialisation tour of some of Allied's plantations. Officials from Allied will, in the next few weeks, visit Belarus to inspect the equipment, chief executive Dr Daniel Sithole said.

"There were here and were impressed," Dr Sithole told The Herald Business. "We will be going there in the next few weeks and thereafter, we hope the transaction will be sealed, hopefully, before end of this quarter. They will supply us with modern equipment, which will help revive operations.

Allied Timbers has been recapitalising the company using own resources, but they were not enough to boost operations. "We have made some milestones using our own resources. We have expanded some of our kilns and acquired haulage vehicles. We are also in the process of resuscitating the Mutare factory and have been consistency in paying workers for the past six months."

The company employs about 1 400 workers. It was born out of the Forestry Commission in 2003 and the idea was to separate regulatory activities from commercial activities. The intention was to enable both institutions to effectively pursue their mandates, with funds from the commercial division supposed to assist in funding regulatory functions.

As such, the commercial wing gave rise to Forestry Company of Zimbabwe, later rebranded to Allied while regulatory activities were reconstituted into Forestry Commission. The company control about 60 percent of Zimbabwe's commercial forests.

- the herald

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

White Zanu-PF aspiring MP intensifies campaign

by staff reporter | 24 February 2018 | 233 Views

MLF denounces Bulelani and his gang of Judas Iscariots and Liars

by Andrea Sibanda, MLF Secretary General | 24 February 2018 | 98 Views

ULoyiko to be showcased at Zabalaza theatre festival

by Thulani Nkala | 24 February 2018 | 66 Views

David Whitehead revival hopes high

by Staff Reporter | 24 February 2018 | 113 Views

Matabeleland South pupils fail to get secondary school places

by Staff Reporter | 24 February 2018 | 108 Views

Khupe rejects Chamisa

by Staff reporter | 24 February 2018 | 135 Views

ZEC wins BVR kits tender challenge

by Staff reporter | 24 February 2018 | 90 Views

Chamisa, Mudzuri kiss and make up

by Staff reporter | 24 February 2018 | 109 Views

Footballer drowns at lodge swimming pool in Bulawayo

by Staff reporter | 24 February 2018 | 88 Views

Madinda looks for spark in ZNA clash

by Staff reporter | 24 February 2018 | 83 Views

Mapeza safe!

by Staff reporter | 24 February 2018 | 72 Views

Amnesty International to engage Mnangagwa

by Staff reporterq | 24 February 2018 | 80 Views

Woman kills hubby

by Staff reporter | 24 February 2018 | 58 Views

Two die in road accident

by Staff reporter | 24 February 2018 | 66 Views

Perrance Shiri taken to court

by Staff reporter | 24 February 2018 | 81 Views

Bulawayo tops social media usage

by Staff reporter | 24 February 2018 | 60 Views

Khupe in the cold

by Staff reporter | 24 February 2018 | 168 Views

'My hubby is a gold digger'

by Staff reporter | 24 February 2018 | 75 Views

Mugabe demands his pension from Mnangagwa

by Staff reporter | 24 February 2018 | 123 Views

Mnangagwa is a mafia obsessed with power

by Staff reporter | 24 February 2018 | 67 Views

Zanu PF youths shocked Mugabe was ousted

by Staff reporter | 24 February 2018 | 86 Views

A tale of three vice presidents

by Tondorindo Chinehasha | 23 February 2018 | 290 Views

Nust Graduate wins beauty pageant

by Jefferson Metha | 23 February 2018 | 169 Views

It's time for rural cemeteries

by Thomas Murisa | 23 February 2018 | 205 Views

Mugabe warned: Shut up!

by Stephen Jakes | 23 February 2018 | 933 Views

2017 O-Level pass rate down to 26.35%

by Ndou Paul | 23 February 2018 | 307 Views

The mystery of the missing MDC-T constitution

by Joe Devanny | 23 February 2018 | 202 Views

Khupe snubs Chamisa overture

by Staff reporter | 23 February 2018 | 376 Views

Mutambara warn MDC-T members

by Staff reporter | 23 February 2018 | 658 Views

Jonathan Moyo taunts 'hopeless charlatan'

by Staff reporter | 23 February 2018 | 443 Views

Cheated wife cuts off man's sex organs

by Punch.com | 23 February 2018 | 214 Views

Cheating man in juju scare

by Staff reporter | 23 February 2018 | 265 Views

Headmaster, wife demand $145,000 from school

by Staff reporter | 23 February 2018 | 211 Views

Woman faces $10 000 adultery lawsuit

by Staff reporter | 23 February 2018 | 160 Views

Chamisa salutes Mnangagwa's govt

by Staff reporter | 23 February 2018 | 265 Views

Chamisa blasts the police force

by Simbarashe Sithole | 23 February 2018 | 1067 Views

The social media president

by Charles Munganasa | 23 February 2018 | 153 Views

Four incredible gambling stories

by Agencies | 23 February 2018 | 124 Views