Bulawayo industries look up to Zisco revival

Bulawayo industries look up to Zisco revival
Published: 15 February 2018 (646 Views)
Industries in Bulawayo relying on steel products have appealed to government to speedily recapitalise giant steel producer Ziscosteel, to enable them to expand their operations.

The remarks came in the wake of government having said that the steel-producing firm is being revived, with shareholders meeting today to approve the takeover of the company's $500 million debt by government, paving the way for the sale of its assets to Tian Li (Hong Kong) Limited.

Mealie Brand managing director, Walter Chigwada said they want to expand their production levels, but since the closure of Ziscosteel they are facing challenges in their business.

Mealie Brand is a division of Zimbabwe Stock Exchange-listed Zimplow Holding Limited.

"Since the closure of Ziscosteel, we have been having challenges of getting raw material because we depend more on steel to function and we now need Ziscosteel to come back faster, so that industries can be returned to normalcy again," he said.

Chigwada said they were working with local companies in Zimbabwe that have begun supplying them with raw materials, but these are still not enough.

"There are many manufacturers who are prepared to work and sometimes raw materials fail to come on time and there will be not enough at times, which is a big challenge," he said.

At its peak, Ziscosteel used to employ about 5 000 workers. It officially closed doors in 2016.

Its revival is set to trigger increased output in other sectors such as coal mining.

The revival of the former steel giant will be a major boost for Hwange Colliery Company Limited.

Ziscosteel was one of the largest off-takers of coal, getting 100 000 tonnes per month.

Chigwada said there is also need for local companies to be competitive in the export market, but as it is they are only able to provide 40% export of the total turnover which is not what they aim for.

"We also need the government to give them more foreign currency because the foreign currency that we are requiring is not yet enough as we need to be competitive in the export market," he said.

"Whatever we get we pass it on to the customers so that we may be able to stay competitive.

"Right now we are putting up exports on a cost recovery basis on the market in order for us to generate the foreign currency but again even on that cost we are struggling to be competitive with other broad companies and we need the support of the government."

- newsday

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

MDC dismisses Party Spokesperson

by Staff reporter | 19 June 2018 | 272 Views

MDC Founding Member calls upcoming elections fair and reasonable

by Knowledge Moyo | 19 June 2018 | 209 Views

You are Zimbabwean because Zapu said so

by Ryton Dzimiri | 19 June 2018 | 158 Views

Wining Zanu PF candidate vows to stand as an Independent

by A Mhlongo | 19 June 2018 | 274 Views

Chamisa says Mnangagwa want to kill him

by Staff reporter | 19 June 2018 | 307 Views

Looking for Pythias Makonese, please get in touch

by Ignatius Mabasa | 19 June 2018 | 135 Views

Zimbabwean immigrant appointed new senator in Canada

by Agencies | 19 June 2018 | 214 Views

Mnangagwa's lies exposed

by Staff reporter | 19 June 2018 | 271 Views

WATCH: CCTV sells out POS machine suspected thieves

by Staff reporter | 19 June 2018 | 160 Views

Zimbabwean gangster jailed 24 years in UK

by Agencies | 19 June 2018 | 176 Views

Mnangagwa challenges ZCDC

by Staff reporter | 19 June 2018 | 165 Views

Why digital money makes sense

by Nick Mangwana | 19 June 2018 | 129 Views

RBZ told to 'delegate forex allocation to banks'

by Staff reporter | 19 June 2018 | 145 Views

Govt sets aside $150m for Command Housing

by Staff reporter | 19 June 2018 | 154 Views

Zamalek table Khama Billiat offer

by Staff reporter | 19 June 2018 | 178 Views

UK embassy exposes MDC Alliance

by Staff reporter | 19 June 2018 | 222 Views

Chamisa unfit to lead Zimbabwe says Mangoma

by Staff reporter | 19 June 2018 | 174 Views

Adoption of MDC-T by Dr Khupe was 'mischievous'

by Staff reporter | 19 June 2018 | 175 Views

Police ban dangerous weapons

by Staff reporter | 19 June 2018 | 132 Views

'Call me Zodwa Wabantwana'

by Staff reporter | 19 June 2018 | 204 Views

Chamisa can't withdraw Alliance candidates says Welshman Ncube

by Staff reporter | 19 June 2018 | 172 Views

Mnangagwa heads to Mashonaland Central

by Staff reporter | 19 June 2018 | 134 Views

No load shedding, says Zesa

by Staff reporter | 19 June 2018 | 109 Views

Year-on-year inflation remains constant at 2.71%

by Staff reporter | 19 June 2018 | 118 Views

Zec says polls can't be stopped

by Staff reporter | 19 June 2018 | 103 Views

Zec to unveil ballot printing company

by Staff reporter | 19 June 2018 | 119 Views

Woman kills, dumps newborn

by Staff reporter | 19 June 2018 | 124 Views

Chamisa swallows Dabengwa

by Staff reporter | 19 June 2018 | 207 Views

12 years jail for church burglar

by Staff reporter | 19 June 2018 | 102 Views

Pregnancy storm after teens' incest

by Staff reporter | 19 June 2018 | 129 Views

FreeZim wins t-shirts wrangle with ZRP

by Staff reporter | 19 June 2018 | 80 Views

'Mugabe was told of missing diamonds'

by Staff reporter | 19 June 2018 | 103 Views

Calls for Kasukuwere's arrest

by Staff reporter | 19 June 2018 | 90 Views

Mujuru speaks on national healing

by Staff reporter | 19 June 2018 | 65 Views