Olivine to in­vest $15m

Chronicle (Zimbabwe) - - Business Chronicle - Bianca Mlilo

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

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