Govt deliberating ways to resuscitate Zimglass

Govt deliberating ways to resuscitate Zimglass
Published: 29 April 2014
The Ministry of Industry and Commerce board is still discussing strategies to revive Zimbabwe's sole flint glass manufacturing company, Zimbabwe Glass Industries Limited (Zimglass).

Industry and Commerce Minister Mike Bimha told BH24 that he is waiting on decisions that will be made by his board.

This is despite earlier indications that Zimglass would become operational this month.

Minister Bimha said a decision can only be made once the board has concluded its evaluations. However, a date cannot be placed on when that will be.

"We cannot say what our plans are to resuscitate Zimglass because the board is still deliberating on the matter. The decisions lie with the board and I do not know when that decision will be made," he said.

Earlier in February this year a company official told journalists that the ministry had taken to a proposed revival strategy they had submitted and agreed to provide the company with short-term funding in April.

The Gweru-based Zimglass is a subsidiary of the Industry Development Corporation (IDC) and initial indications from management show that the firm requires $15 million funding for the short term functions.

Zimglass has been facing financial constraints and limitations in the production of glass due to lack of capital.

The company was not functional for the past two years and only resumed limited production in the third quarter of last year.

Zimglass resumed operations in August 2013 when the reconstruction of its furnace rebuild was funded by a local consortium of local banks to the tune of $8,5 million.

The $8,5 million was, however, insufficient to meet the firm's working capital requirements.
- BH24
Tags: Zimglass,

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