ZimChem Refiners bemoans imports

Michael Magoronga, Midlands Correspondent

KWEKWE-based tar producer, ZimChem Refiners (Pvt) Limited, says its products are not receiving adequate support from the domestic market as businesses still prefer imports.

ZimChem is a subsidiary of both Hwange and Ziscosteel and processes crude benzol and tar into a range of chemical products that are used for road works and timber protection among others.

Acting managing director, Mr Tendai Shoko, said the company, which resumed operations in June after a long sabbatical, was ready and has capacity to meet local demand.

“There are a lot of roadworks going on like the Harare–Beitbridge-Chirundu Highway project. We understand that about five contractors were given the mandate to carry out the job and have since been given the list of products for use. 

“It is sad that they have chosen to import the MC30, which is equivalent to the tar that we have in stock and have been using in other roads in the country,” said Mr Shoko.

He said his company has large stocks of tar prime that can be used for local road construction but complained that the contractors were turning them down.

“Government is aware that we have large volumes of prime tar that is tried and tested and has been used in most roads in the country. We are confident that we are able to meet the demand if given the contract to supply. We can easily supply the material,” said Mr Shoko. 

“Usually, we used to say payment first before collection but in this case we had even relaxed the conditions and said they can use and pay later but still they turned us down.”

Mr Shoko said their operational challenges were being worsened by a market letdown as local businesses chose to import timber processing chemicals from neighbouring countries.

“We have a lot of product that has no takers. Most of our customers prefer importing products like creosote from neighbouring countries as they consider it relatively cheaper for them. But given the opportunity, we are able to substitute the import component as we are producing creosote locally,” he said. Mr Shoko said they have since engaged Government over the matter and hoped the issue would be looked into positively.

“We approached the Ministry of Transport and I understand talks are going on and very soon we will receive a positive response,” he said.

The company is currently facing operational challenges due to shortage of raw material. Zimchem used to rely on Hwange Colliery and Ziscosteel for raw material but currently they are getting tar from Hwange Coal NA Gasification Company who are failing to meet the demand.

The company was forced to shut down its benzol processing plant while its tar processing plant is operating at 10 percent as it is only receiving 400 tonnes of tar per month out of a possible 4 000 tonnes. Located within the Ziscosteel plant, Zimchem can employ about 200 workers at its peak but has since downsized its workforce to about 70.

The revival of Ziscosteel coke ovens under ZimCoke is expected to breathe a new lease of life into the company as it is expected to benefit directly from its operations.

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