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Midlands Bureau

Redcliff-based chemical producing company, ZimChem Refineries, is targeting to up its production capacity from 10 percent to about 50 percent by January.

Acting general manager, Mr Tendai Shoko, said this during a tour of the company by the Minister of State for Presidential Affairs, Monitoring and Implementation of Government Programmes, Dr Jorum Gumbo this week.

He said the company was refurbishing two refinery plants to achieve the feat.

Wholly owned by Government, ZimChem is in the process of finalising a deal to get funding to resuscitate its crude tar plant and reopen its benzol plant after Government placed it on the 8th 100-day cycle projects.

The company is reeling from a huge debt mainly emanating from its idle parent company Ziscosteel, and is now pinning hopes on Government intervention with huge returns expected once the refurbishment works are complete.

“We are happy that Treasury has accepted our funding request,” said Mr Shoko.

“What this means is that once we get the funds, we will be able to increase our tar production levels from the current 25 percent to around 65 percent. On benzol we had completely stopped operations and we expect the plant to be up and running again.

“This means our capacity utilisation will jump to around 50 percent. We already have export markets who are demanding our products. On average, we will be able to rack in at least US$500 000 in forex earnings apart from import substitution where our products will be used in the emergency road rehabilitation exercise.”

Dr Gumbo said Government would continue to capacitate ailing firms in line with its industrialisation drive.

“There is no doubt that refurbishment of the production plant will boost production and impact positively on the national programme of road rehabilitation,” he said.

“It is, however, regrettable that most of the chemicals that are being used in the maintenance and rehabilitation of our roads are imported, mostly from South Africa. It is, therefore, imperative that ZimChem should be capacitated so that they manufacture these chemicals locally.”

The shutting down of Ziscosteel’s Zimcoke has made it difficult for ZimChem to get back on its feet as it was getting most of its crude ore from the firm.