French yeast manufacturer, Lesaffre Group has started refurbishing its subsidiary’s Kwekwe yeast processing plant at an estimated cost of $3,5 million. Lesaffre Group concluded the 60 percent acquisition of Anchor Yeast in September last year to form Lesaffre Zimbabwe in a deal expected to inject an initial $17,5 million to boost productivity.Following the acquisition of Anchor Yeast, the former holding company, Anchor Holdings changed its name to Sinapis investment Holdings as the diversified group wanted to avoid brand contamination.
Sinapis Investment Holdings chief executive Mike Nyabadza yesterday said recapitalisation of Lesaffre Zimbabwe is an ongoing process.
“The recapitalisation of Lesaffre Zimbabwe is an ongoing programme and it involves the acquisition of new equipment and refurbishment of the Kwekwe plant.
“As part of the plan we have started the refurbishment of the plant under an exercise which will cost $3,5 million,” said Mr Nyabadza.
He said the refurbishment exercise is looking at increasing plant capacity as it steps up efforts to produce quality products that can compete in the region.
Lesaffre Zimbabwe plans to double capacity to 12 000 tonnes per annum from the current 6 000 tonnes.
The global yeast manufacturer’s long term goal is to generate regional exports for the business.
Mr Nyabadza said new products will be introduced on the market once the refurbishments have been completed.
The coming of a new shareholder in Anchor Yeast is expected to significantly improve the standard and quality of yeast products produced in Zimbabwe.
On the hand, Sinapis will invest $1,5 million on a 17 km pipeline that links the Gweru yeast factory and the company’s farm.
This will see the group venture into dairy farming. 2 000 dairy cows will be imported from Europe and South Africa.
The company plans to use resultant effluent which is highly nutritious from Lesaffre Zimbabwe to irrigate 500 hectares at the farm.
The effluent will be used to irrigate pastures and foliage crop that would feed the dairy cows. About $4 million will be invested towards the purchase of the cows.