MegaPak in drive to improve standards

MegapakTinashe Makichi Business Reporter
Delta Beverages’ Ruwa-based packaging subsidiary, MegaPak has invested about $30 million since dollarisation towards retooling and refurbishment of its existing equipment in order to meet ever-changing global standards, a company official has said.
The investment went towards the acquisition of moulds and equipment compatible with the packaging requirements of its new Polyethylene Terephthatlate (PET) line.

MegaPak, a 51-49 percent joint-venture between Delta and South Africa’s NamPak, supplies  all of Delta’s packaging requirements.

Speaking on the sidelines of  the tour organised by CZI on behalf of the Parliamentary Portfolio Committee on Industry and Commerce, MegaPak managing director Mr Martin Makomva said a huge investment has been made so far to improve standards.

“Total investment since dollarisation amounts to $30 million which went towards the acquisition of new machines, technology and refurbishments.

“There is a PET line, acquired from KHS of Germany at a total cost of $4 million, which was designed to pack three PET sizes, 2 litres, 1,5 litres and 500ml,” said Mr Makomva.

The investment boosted Delta Beverages’ soft drink volumes by 149 percent in 2010 as it adequately replaced PET imports from Botswana, South Africa and Zambia.

The PET line has an installed capacity of 30 000 bottles per hour.

“Of late the company did not have enough capital to retool but with the growing demand of our products on the export market we think it is quite strategic for us to keep injecting money towards the acquisition of the latest technology.

“As a company we are still not happy with our competitiveness on the export market because some of our machines are now old; some even 40 years old,” said Mr Makomva.

MegaPak is currently operating at a production capacity of 12 000 tonnes of plastic with 360 employees.

The company sits on 75 percent market share and is investing about $4,5 million annually towards retooling.

Mr Makomva said MegaPak is the only company with a crate manufacturing factory, hence need for affordable capital from banks to replace the old equipment.

MegaPak also invested towards establishing a recycling plant consisting of a bottle receiving bay , bottle washing and crushing equipment that converts waste PET bottles into flake, which will be sold to targeted end use markets.

The anticipated positive impacts of the recycling project include reduction of the volume of the post-consumer PET in the waste streams and resultantly the associated environmental impacts of post-consumer PET and creation of income generating opportunities for participating communities and business.

Mr Makomva also cited power cuts as one of the biggest challenges affecting the company’s operations.

“We are appealing to Government to address the issue of power, through sparing power cuts to the companies are still functioning. Power outages are further complicating our situation as an industry,” he said.

Speaking to The Herald Business during the tour last week, Industry and Commerce Committee chairperson Mr Ray Kaukonde said bold measures should be taken to make sure a level playing field is created between imports and local products.

He said the local industry has been affected immensely by the growing influx of imported products and this was negatively affecting the viability of the local industry.

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