Business / Companies
China Jingniu Glass Factory (Pvt) Limited needs $13M to complete the project
05 Mar 2016 at 08:15hrs | Views
Deputy Minister of Industry and Commerce Chiratidzo Mabuwa has said the China Jingniu Glass Factory (Pvt) Limited needs $13 million for its completion.
Mabuwa said Kadoma Chinese Glass Company, officially referred to as the China Jingniu Glass Factory (Pvt) Limited is a government approved project.
"The company started the construction of the factory in 2006 under funding from Jingniu Ceramic Company Limited of China. An estimated US$12, 5 million out of the total cost of US$25, 5 million was utilised for civil works and part construction of the factory and installation of machinery and equipment," he said.
"About US$13 million is now required to fully complete the project. The company has cited the shortage of funds as a major constraint to the completion of the construction of the glass factory. I am informed that to mitigate this challenge, the parent company, Jingniu Ceramic Company Limited approached China Bank for additional funding to bankroll the project. The company has also approached potential local investors who may want to partner in the business. These efforts have not yet produced the desired results."
He said in line with the Ministry's mandate of promoting industrial growth, Kadoma Glass Company was invited for a meeting in order to establish the state of the project and the challenges undermining the operationalisation of the project.
"The meeting was attended by a high level delegation from Jingniu Ceremic, which is the parent company of Kadoma Glass Company. They travelled all the way from China to meet with us," he said.
"Subsequent to the referred meeting, a delegation from my Ministry comprising myself, the Secretary for Industry and Commerce and senior officials from the Ministry visited Kadoma Glass Factory for further findings. The main purpose of the visit was to have an in-depth appreciation of the state of the glass project, establish the challenges undermining the operationalisation of the project and to map the way forward."
Mabuwa said the findings confirmed that the unavailability of funds is the main challenge facing the company and it also confirmed that there was no local attraction of that investment of $13 million.
"My Ministry will, therefore, continue to provide all the necessary assistance to Kadoma Chinese Glass Company to ensure that it completes the construction of the buildings so that full production takes place as soon as possible. We are in consultation now with the parent company which has informed us that they are waiting for their bank to consider the additional $13 million loan that they have asked for," he said.
Mabuwa said Kadoma Chinese Glass Company, officially referred to as the China Jingniu Glass Factory (Pvt) Limited is a government approved project.
"The company started the construction of the factory in 2006 under funding from Jingniu Ceramic Company Limited of China. An estimated US$12, 5 million out of the total cost of US$25, 5 million was utilised for civil works and part construction of the factory and installation of machinery and equipment," he said.
"About US$13 million is now required to fully complete the project. The company has cited the shortage of funds as a major constraint to the completion of the construction of the glass factory. I am informed that to mitigate this challenge, the parent company, Jingniu Ceramic Company Limited approached China Bank for additional funding to bankroll the project. The company has also approached potential local investors who may want to partner in the business. These efforts have not yet produced the desired results."
He said in line with the Ministry's mandate of promoting industrial growth, Kadoma Glass Company was invited for a meeting in order to establish the state of the project and the challenges undermining the operationalisation of the project.
"The meeting was attended by a high level delegation from Jingniu Ceremic, which is the parent company of Kadoma Glass Company. They travelled all the way from China to meet with us," he said.
"Subsequent to the referred meeting, a delegation from my Ministry comprising myself, the Secretary for Industry and Commerce and senior officials from the Ministry visited Kadoma Glass Factory for further findings. The main purpose of the visit was to have an in-depth appreciation of the state of the glass project, establish the challenges undermining the operationalisation of the project and to map the way forward."
Mabuwa said the findings confirmed that the unavailability of funds is the main challenge facing the company and it also confirmed that there was no local attraction of that investment of $13 million.
"My Ministry will, therefore, continue to provide all the necessary assistance to Kadoma Chinese Glass Company to ensure that it completes the construction of the buildings so that full production takes place as soon as possible. We are in consultation now with the parent company which has informed us that they are waiting for their bank to consider the additional $13 million loan that they have asked for," he said.
Source - Byo24News
