ZimChem seeks US$3m injection to increase production

REDCLIFF-based chemical manufacturing company, ZimChem Refineries (Pvt) Limited, says it requires US$3 million for the upgrade of its refinery plant and purchase of raw material to increase production.

The wholly-owned Zimbabwean firm processes crude benzol and tar into a range of chemical products that are used for road works and timber protection among others.

ZimChem is operating at 10 percent capacity owing to shortage of raw material. Acting managing director, Mr Tendai Shoko, said a revival roadmap had been put in place to pick up production from 10 percent to 85 percent.

“We are working with the new Ziscosteel board and management so that we revive the batteries within Ziscosteel and pick up production and increase capacity utilisation. The short-term plan is to increase production from 10 percent to 85 percent then from there to 100 percent,” said Mr Shoko.

In a bid to counter raw material shortages, he said arrangements were being made that Hwange and its subsidiaries supply tar to ZimChem instead of exporting it.

“We are working a plan so that all the tar, which is being produced by Hwange companies come here for value addition and further processing,” he said.

Should the funds be availed, they will be channelled towards sprucing up the plant and purchase of raw material.

“We are currently looking at sprucing up our plant. One of our units has not been functional and has been under care and maintenance. Only one refinery was operational. ZimChem alone requires US$2 million for the sprucing up work at the plant and then for the purchasing of raw material another US$1 million for the initial stage,” said Mr Shoko.

ZimChem was also looking forward to boosting its exports.

“Currently we only exporting four loads to South Africa translating to US$250 000 per month and US$1,2 million per year. We are therefore looking at filling up so that our revenue could surpass us$20 million through exports of our products,” said Mr Shoko.

At the moment the company is producing 3 000 tonnes of crude tar and 1 000 tonnes of benzol. ZimChem was forced to shut down its benzol processing plant and its tar processing plant is operating at 10 percent capacity as it is only receiving 400 tonnes of tar out of a possible 4 000 tones.

Located within the Ziscosteel plant, the company can employ about 200 workers at its peak, but is currently employing about 70. ZimChem is at the heart of Ziscosteel revival plans with the Government recently announcing that the steel giant company’s revival hinges on subsidiaries.