ZimAlloys seeks US$5,5m

ZimAlloys has already secured US$350 000 to upgrade its M1 furnace to increase its production capacity, which was commissioned last year.

FERRO alloy manufacturer, Zimbabwe Alloys (ZimAlloys), is seeking to raise US$5,5 million to bring back to life its A3 furnace before the end of the year to boost revenue.
The A3 furnace is the country’s biggest ferrochrome furnace with a production capacity of 3 000 tonnes a month and revenue of about US$2,8 million a month.
ZimAlloys has already secured US$350 000 to upgrade its M1 furnace to increase its production capacity, which was commissioned last year.
This saw about 300 workers returning to work.
The company’s judicial manager, Reggie Saruchera, said the company had courted two potential investors to fund the refurbishing of the furnace.
“We are making good progress in securing US$5,5 million in funding so that we can bring the A3 furnace back to life.
“We have two prospective financiers for this project and once it is done, it will take seven to nine months to construct the furnace and bring it to life,” he said.
“We are also looking at upgrading the M1 furnace which is the only one of the five furnaces operational here so that we increase production capacity to 300 tonnes per month, which will in turn increase our revenue inflows.”
He said the upgrading process will see the company realising US$450 000 monthly in revenue from the M1 furnace alone.
ZimAlloys, which is sitting on 5000 tonnes of chrome stockpiles, is still waiting for a permit following the lifting of a ban on the export of raw chrome.
Saruchera said the company has potential of unlocking about US$225 million in the next five years through raw chrome exports and this would enable it to pay off its creditors.
ZimAlloys was placed under judicial management in 2013.
newsdesk@fingaz.co.zw

Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette