IDC seeks investor for Zimglass revival

INDUSTRIAL Development Corporation’s glass manufacturing firm, Zimglass has started aggressively looking for an investor who can inject $7 million towards the revival of the plant after earlier indications of a plan to liquidate the company.

The plan to liquidate the company was mooted after a potential Mauritian investor pulled out of the deal due to the company’s indebtedness, opting instead to buy its assets.

Zimglass which has been insolvent since 2010, voluntarily applied for judicial management in 2014 citing lack of capital, debt overhang and mismanagement. Its assets stood at $19,2 million as at December 2014 while its liabilities were at $31,2 million.

Zimglass managing director Gilbert Tapfuma told the Herald Business that there is still an opportunity to revive the company despite earlier indications of liquidation.

“We are looking for an investor who can inject about $7 million towards the revival of the plant. The plant is still viable but the furnaces still need some patch ups.

“Revival of the plant is our major priority at the moment hence our current plans to search for an investor. In as much as $7 million will ensure we start operations at maximum capacity, with only $3 million we can still start operations,” said Mr Tapfuma.

Zimglass was established in 1963 as a subsidiary of Consol Glass and became an IDC subsidiary in 1984.

IDC management who spoke to the Herald Business expressed optimism that the company would attract investors even post liquidation.

The Gweru-based firm used to manufacture glass packaging material for alcoholic and sparkling beverages, food, liquor and pharmaceutical segments.

Major domestic customers include Delta Beverages, African Distillers, Mutare Bottling Company, Straitia Investments, Olivine Industries, Datlabs and E. Snell and Company. Government last year directed IDC to identify for disposal, ailing companies under its ambit that are non-core to its new mandate and in line with the country’s industrialisation strategy.

The directive followed approval restructuring of IDC by Cabinet. of the