Zimbabwe Glass Industries (Zimglass), the country“s largest glassmaker which has been on an extended shutdown since December, is expected to resume operations next month.
Mike Ndudzo, managing direc…
Zimbabwe Glass Industries (Zimglass), the country“s largest glassmaker which has been on an extended shutdown since December, is expected to resume operations next month. Mike Ndudzo, managing director of the Industrial Development Corporation, Zimglass“ parent company, said critical staff, mainly in sales and administration, were working on half-paid leave. The company, which for years has been battling disappointing sales due to low customer demand, is burdened with 32 million bottles of stock valued at US$ 218 million. “The company also faces problems of storage costs, obsolescence risk, breakage and other risks,” Ndudzo said in response to questions from the Financial Gazette. “Zimglass“ case is of over capacity, it has too many stocks and low demand for its products. To overcome this problem, the company is doubling its efforts to find alternative markets and increase exports of non-returnable products as a way of trying to clear stock levels and increase profitability.” The Gweru-based firm, which produces 180 tonnes of glass a day, exports a small percentage of its total output. It is negotiating with Megabuck and Consol of South Africa in a move that is expected to boost its production capacity. The foreign firms are expected to bring in modern technology and expertise to facilitate efficient glass production at Zimglass, enhancing its operations in line with its thrust of penetrating the export market.