Zimbabwe: IDC to Revive G1 Furnace at Zimglass

THE Industrial Development Corporation is prioritising the rebuiding of the G1 furnace at its Gweru-based subsidiary, Zimglass in order to take advantage of opportunities that have been created by South Africa´s hosting of the World Cup in 2010.

Zimglass has already been awarded tenders to supply the regional Coca-Cola bottlers with bottles.

"The regional demand for the Zimglass group´s glass packaging is very high in the run-up to the 2010 World Cup games in South Africa.

"As a result, in order to assure supply in 2010, consideration will be given to rebuild the G1 furnace at Zimglass Industries (Private) Limited during 2008," said IDC´s general manager, Mr Mike Ndudzo in his report that accompanied his company´s financial results.

Mr Ndudzo added that the G2 furnace leased to Headend Enterprises (Private) Limited, which is currently in operation, would be due for a rebuild in the first quarter of 2009.

The G1 furnace has been idle since May 2004 owing to the non-availability of spare parts and foreign currency problems.

At the time of the closure the company required over US$60 000 to import raw materials monthly to produce glass.

The amount was later revised to US$7 million and IDC has been trying to secure investors to pump in money in the project.

IDC was also undertaking a comprehensive market study in the region to assess the viability of the project since production from the furnace would be meant strictly for the export market, before engaging an investor.

IDC had in the past not fully pursued the resuscitation of the G1 furnace, which produce coloured glass, as the G2 furnace had the capacity to produce both clear and coloured glass as well as satisfy local and regional demand.