News / National
Lancashire Steel ready to resume operations
24 Jul 2019 at 03:11hrs | Views
KWEKWE-based company, Lancashire Steel, has received a US$2 million boost to purchase raw materials and indications are that formal operations may resume anytime soon.
The company ceased operations about a decade ago following the closure of its major raw material supplier, Ziscosteel, in 2008. Lancashire received a loan facility from Reserve Bank of Zimbabwe subsidiary, Zimbabwe Asset Management Corporation (Private) Limited (ZAMCO).
Speaking during a Parliamentary Portfolio Committee on Industry and Commerce familiarisation tour of the plant on Friday, company general manager Mr Ezekiel Machingambi said they expected to receive their first truckload of raw materials from South Africa this week.
"We received a US$2 million loan facility from ZAMCO and we expect to receive our first truckload of raw materials this week. We ordered semi-processed products from South Africa, we will beneficiate them in our wire mill section," said Mr Machingambi.
He said the revival of the company, which will be done in stages, will start with the wire plant before resuscitation of other plants in the long run.
"We are obviously going to start with the wire mill plant in the initial stages before we bring back the rod mill. Going forward, we are looking to operations commencing earnestly after we import the raw materials," said Mr Machingambi.
He said Lancashire Steel has had to import raw materials because locally there are no billet sizes that fit in the company's machinery.
"We need a reliable supply of billets and we have not been very lucky in terms of the size of billets that we require. So, we will be importing rods and semi-processed galvanised wire from South Africa," said Mr Machingambi.
Lancashire Steel's revival is set to benefit about 100 workers in the initial stages. The company has capacity to employ about 520 workers when operating fully. The chairperson of the Parliamentary Committee, Joshua Sacco, said industry revival was critical in the Midlands province and that his team was going to make recommendations on the need to speed up the process.
"What I have noted is that these companies are interlinked, one company cannot survive without the other.
"We are therefore, going to make strong recommendations that the companies be revived," said Sacco.
"At least if we start by the revival of Lancashire, we are assured that some more companies that rely on it for raw materials are going to benefit. We have Haggie Rand that solely relies on the wire from this company. So, we are sure that we are headed in the right direction."
The Parliamentary committee also visited Sable Chemicals and Zisco Steel.
The company ceased operations about a decade ago following the closure of its major raw material supplier, Ziscosteel, in 2008. Lancashire received a loan facility from Reserve Bank of Zimbabwe subsidiary, Zimbabwe Asset Management Corporation (Private) Limited (ZAMCO).
Speaking during a Parliamentary Portfolio Committee on Industry and Commerce familiarisation tour of the plant on Friday, company general manager Mr Ezekiel Machingambi said they expected to receive their first truckload of raw materials from South Africa this week.
"We received a US$2 million loan facility from ZAMCO and we expect to receive our first truckload of raw materials this week. We ordered semi-processed products from South Africa, we will beneficiate them in our wire mill section," said Mr Machingambi.
He said the revival of the company, which will be done in stages, will start with the wire plant before resuscitation of other plants in the long run.
"We are obviously going to start with the wire mill plant in the initial stages before we bring back the rod mill. Going forward, we are looking to operations commencing earnestly after we import the raw materials," said Mr Machingambi.
He said Lancashire Steel has had to import raw materials because locally there are no billet sizes that fit in the company's machinery.
"We need a reliable supply of billets and we have not been very lucky in terms of the size of billets that we require. So, we will be importing rods and semi-processed galvanised wire from South Africa," said Mr Machingambi.
Lancashire Steel's revival is set to benefit about 100 workers in the initial stages. The company has capacity to employ about 520 workers when operating fully. The chairperson of the Parliamentary Committee, Joshua Sacco, said industry revival was critical in the Midlands province and that his team was going to make recommendations on the need to speed up the process.
"What I have noted is that these companies are interlinked, one company cannot survive without the other.
"We are therefore, going to make strong recommendations that the companies be revived," said Sacco.
"At least if we start by the revival of Lancashire, we are assured that some more companies that rely on it for raw materials are going to benefit. We have Haggie Rand that solely relies on the wire from this company. So, we are sure that we are headed in the right direction."
The Parliamentary committee also visited Sable Chemicals and Zisco Steel.
Source - chronicle
