Olivine to invest $15m
OLIVINE Industries, one of the country’s largest agroprocessing firms, plans to invest $15 million over the next three years in its margarine and soap processing technologies.
The company produces Buttercup Olivine cooking oil and Jade soap.
Olivine board chair Mr Peter Madara said last week that investment on their margarine plant had already begun.
“During the half year ended June 2016, the Olivine margarine plant was rehabilitated and upgraded to world class safety and hygiene standards at a cost of $500 000,” said Mr Madara.
“Over the next three years, there will be further phased investment in margarine processing technology.
“The total planned investment in the margarine processing technology and the soap plants is $15 million over the next three years.”
He said the upgrade of the margarine plant during the first half of the year had an adverse impact on revenues and cash flows, but the board and management expect Olivine to break-even in the second half of the year, with a return to profitability expected in 2017.
“On Jade toilet soaps, Olivine is fully supplying the market, while on Buttercup margarine, because production only restarted end of June 2016 after plant upgrade, capacity utilisation is still rising but had crept to 55 percent by August 2016,” said Mr Madara.
“The positives recorded so far are that the business can now supply the full requirements of Buttercup margarine in the local market, while upgraded and new technologies will improve efficiency and in turn competitiveness of Olivine products in the market.”
“The business has begun to benefit from the new shareholders in terms of supply of raw materials, access to working capital and capital investment.”
Olivine Industries last year in October acquired new shareholders: S R Amando Holdings and Wilmar Investments.
The local shareholders are the Ministry of Finance and Economic Development and Tonmont Trading (Pvt) Ltd, which bought out the stake of the Industrial Development Corporation of Zimbabwe Ltd in June this year. — @BiancaMlilo margarine,
Arda chairperson Mr Basil Nyabadza (left) inspects a wheat crop together with an official recently