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Lobels has made huge investment aimed at increasing capacity for both Bulawayo and Harare operations

Business Reporter
Lobels Zimbabwe has acquired a new production line which will increase bread production by 42 percent to 340 000 loaves per day at the Harare plant as the company steps up efforts to reclaim its market share.
Lobels, which stopped operations in June 2011 due to working capital constraints, has since made a stunning recovery that saw it repay $14 million it owed to CBZ Bank, MetBank, FBC Bank and NMB Bank. The consortium of local banks under the vehicle, Altiwave, now holds 100 percent shareholding of the Harare bakery and 90 percent of the Bulawayo bakery.

In an interview on the sidelines of the Zimbabwe Investment Authority investor’s awards last week, Lobels chief executive Mr Ngoni Mazango said the company has made a huge investment aimed at increasing capacity for both Bulawayo and Harare operations.

“When I took over the operations in 2012, Lobels was only producing 30 000 loaves per day but we have since grown the business from that capacity to 240 000 loaves per day in Harare.

Lobels also acquired a new production line for its Bulawayo operations aimed at increasing capacity by 50 percent to 150 000 loaves per day, a move set to create employment in the industrial town of Bulawayo.

The bakery company currently employs 910 workers in Harare and 520 in Bulawayo as well.

He said Lobels is reclaiming its market position with the share sitting at about 38 percent. The group is targeting a 45 percent share.