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The Midlands Metals factory in Gweru

Lovemore Zigara, Midlands Correspondent
MIDLANDS Metals has deferred the commissioning of its smelting plant due to late processing of payments to Chinese suppliers, which has delayed deliveries of the equipment.

The initial phase of the $1, 5 million retooling exercise is expected to cost $1 million and the new plant was expected to be commissioned by February next year.

Once commissioned, the latest technology will see the company supplying 25 percent of platinum miners’ ball mills needs, which are presently being imported.

Midlands Metals operations director, Mr Tatenda Karimazondo told Chronicle Business that the depletion of nostro accounts reserves had made it difficult for the company to meet its target. He said it was taking long to process payment and as such this was delaying the delivery of machinery.

“We have been forced to defer the commissioning of the new plant because some of the equipment is yet to be delivered to us as the suppliers’ money has not yet been deposited in the accounts even though we made the transfers. We have now revised the commissioning of the new plant to mid next year,” he said.

Mr Karimazondo said the initial phase of the commissioning will cost at least $1 million and will see production increase to 500 tonnes monthly.

The completion of the second phase, he said, will push total investment to $1,5 million and this will increase  production capacity to 2 000 tonnes of iron and steel products per month.”

The new technology would enable the company to supply some of its products especially mill balls to the platinum industry, which is importing such products because local foundries cannot meet the required quality standards.

The Midlands Metals boss said the investment comes as the company is trying to stay abreast with technology and shrug off competition from other local firms, which are also embracing new technology.

The iron and steel manufacturer is one of the few surviving industries in the Midlands capital and manufactures products for the mining, farming and construction industries.

Moves to recapitalise by local companies will go a long in reducing the import bill by local miners, which have been importing most of their equipment outside the country contributing to the country’s bulging import bill.

@lavuzigara1