Business / Companies
Bata Shoe Company looking for US$5m to buy machinery
23 Apr 2012 at 10:33hrs | Views
GWERU - SHOE manufacturer, Bata Shoe Company, is seeking at least US$5 million dollars to purchase shoe making equipment.
Currently Bata is operating at 60 percent and hopes to be at optimum production by mid next year.
Managing director, Luis Pinto said his company is seeking capital for the purchase of the machinery.
Bata intends to purchase two sets of Cf-737 MA 9 Pencer hydraulic toe lasting, a set each of CF-HM935 automatic punching double side eyeleting, Toe puff applying machine, Outsole stitching machine, Leather measuring machine and a Finvac vacuum drier.
This comes after the recent purchase of machinery which was commissioned at the Gweru plant early this year.
"The company needs at least US$5 million to purchase shoe manufacturing equipment which will see us increasing production to about 80 percent by year end and hopefully full production by mid next year."
"We are looking for the money but we have not found any financiers locally because it is not feasible because of the high interest rates local banks are charging. However, our foreign financiers are not forthcoming because they feel it is risky to put their monies here as they view some of the policies as not investor friendly," said Pinto in a thin veiled reference to the Indegenisation and Economic Empowerment drive which seeks to give majority shareholding of big corporations to locals.
Pinto is however, hopeful that Bata will manage to get the required funds.
He said the company has already secured funds to refurbish its retail outlets across the country in a move aimed at having the branches conform to international standards' best practices.
Seven branches have been earmarked for the refurbishment exercise in the first phase which includes the
Leopold Takawira branch in Harare which has already been completed and opened its doors to the public last month.
"We have secured funding to refurbish seven of our branches around the country that is Bulawayo, Gweru, Mutare, Kwekwe, Kadoma and two in Harare. This is in line with our commitment to have a more international look and service for our customers," explained the company managing director.
Currently Bata is operating at 60 percent and hopes to be at optimum production by mid next year.
Managing director, Luis Pinto said his company is seeking capital for the purchase of the machinery.
Bata intends to purchase two sets of Cf-737 MA 9 Pencer hydraulic toe lasting, a set each of CF-HM935 automatic punching double side eyeleting, Toe puff applying machine, Outsole stitching machine, Leather measuring machine and a Finvac vacuum drier.
This comes after the recent purchase of machinery which was commissioned at the Gweru plant early this year.
"The company needs at least US$5 million to purchase shoe manufacturing equipment which will see us increasing production to about 80 percent by year end and hopefully full production by mid next year."
"We are looking for the money but we have not found any financiers locally because it is not feasible because of the high interest rates local banks are charging. However, our foreign financiers are not forthcoming because they feel it is risky to put their monies here as they view some of the policies as not investor friendly," said Pinto in a thin veiled reference to the Indegenisation and Economic Empowerment drive which seeks to give majority shareholding of big corporations to locals.
Pinto is however, hopeful that Bata will manage to get the required funds.
He said the company has already secured funds to refurbish its retail outlets across the country in a move aimed at having the branches conform to international standards' best practices.
Seven branches have been earmarked for the refurbishment exercise in the first phase which includes the
Leopold Takawira branch in Harare which has already been completed and opened its doors to the public last month.
"We have secured funding to refurbish seven of our branches around the country that is Bulawayo, Gweru, Mutare, Kwekwe, Kadoma and two in Harare. This is in line with our commitment to have a more international look and service for our customers," explained the company managing director.
Source - fingaz
