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Mr Milton Macheka

Enacy Mapakame, Harare Bureau
Paper and packaging group — Amalgamated Regional Trading (ART) — plans to invest $20 million to revamp its Kadoma Paper Mill as it seeks to enhance efficiency and achieve a 200 percent jump in production.

In an interview, ART chief executive officer Mr Milton Macheka, said the group is targeting to produce at least 60 tonnes a day from an estimated 19 to 20 tonnes a day.

The project is expected to start in the financial year 2019.

“We want to continue with the retooling of the Kadoma Paper Mills, we are looking at putting in place a tissue machine to improve the quality and capacity of the plant.

“In addition to that, we are also looking at maybe the initial conversion of the current machine to do craft. That is our main target for our businesses as a group.

“The investment in Kadoma will entail investments into Softex, which is the converting department because of the quality of paper and size coming out of the machinery.

“The Kadoma and Softex combined will be looking at upwards of $20 million,” said Mr Macheka.

Meanwhile, its subsidiary – Chloride is eyeing to double exports and expand regional markets after it increased battery production by 85 percent to 1 300 a day, thanks to Government’s measures to protect local industry.

This comes after the battery manufacturer, also revamped its production line from manual to automated process. Chloride also now produces its own battery packaging, which it used to import from South Africa.

General manager Kudzielister Pasipanodya, said the company that has been exporting to Zambia and Malawi and is now considering expansion into Mozambique, Botswana, Namibia and South Africa.

“We now want to increase our exports to Zambia as demand is now high due to improved quality. We used to export 3 000 a month but now increased to 6 000.

“In Malawi we started off at 700 batteries and we have not been consistent with supplies, but now we can manage every month after we improved on our production,” said Mr Pasipanodya.

In an interview after touring the Chloride manufacturing plant, Industry and Commerce Minister Dr Mike Bimha, said Government would continue to assist local manufacturing companies access foreign currency for retooling and acquiring raw materials.

He, however, said the local firms needed to present their proposals collectively through apex bodies such as the Confederation of Zimbabwe Industries (CZI).

“This will make it easier for us to understand what their needs are as a collective body than individually so that we may approach monetary authorities to assist.

“As Government, we support local industry so that they produce more, export and bring in the much needed foreign currency. We are happy with progress made by firms like these (Chloride) who are promoting import substitution, value addition and exports.

“This is also in line with our industrialisation agenda,” said Dr Bimha.

According to the CZI manufacturing report, industry has cited shortages of foreign currency as an impediment to accessing essential raw materials for production as well as import licences.