Chinese firm to sink $120m in tiles plant

18 Nov, 2018 - 00:11 0 Views

The Sunday Mail

Golden Sibanda
Senior Business Reporter
CHINESE firm, Sunny Yi Feng Tiles (Private) Limited, will invest up to US$120 million in its tiles manufacturing project in Norton, 40 kilometres west of Harare, a top Chinese official has said.

Acting Chinese Ambassador to Zimbabwe, Mr Zhao Baogang told The Sunday Mail Business in an interview last week that Sunny Yi Feng Tiles is already building the tiles plant which is expected to start production early next year.

He said the plant will create thousands of jobs.

Company officials are on record saying the tiles manufacturing project will create 1 700 jobs.

US$30 million will be invested in the first phase of the project, which has significant latitude for expansion.

The Chinese diplomat said his country is willing to support the Zimbabwe Government through projects funding and private investments, set to be pursued in terms of the two countries’ comprehensive strategic partnership anchored on the agreements made between President Mnangagwa and his counterpart President Xi Jinping in April this year.

Zimbabwe and China’s relationship dates back to the time of Zimbabwe’s struggle for independence, which saw the Asian economic giant offering various forms of support until independence in 1980.

Following President Mnangagwa’s visit to China in April this year, China stands ready to work with Zimbabwe for the benefit of the two nations, President Xi said then.

Ambassador Baogang said China had already started working with Zimbabwe on various economic projects through concessional loans and project finance under the Belt and Road Initiative, which aims to build a better China-Africa community.

“We expect that Zimbabwe could benefit from concessional loans provided by the Chinese Government and by Chinese financial institutions under the framework of FOCAC (Forum for China-Africa Cooperation),” he added.

“We encourage many (Chinese) investors to come to Zimbabwe to conduct feasibility studies and we hope that after the feasibility studies, they will invest here.

“Quite recently, a Chinese company started building a tile factory in Norton. They will invest US$120 million into the project and early next year, it will start production. Gradually, that factory will expand into an industrial park and create thousands of jobs,” Ambassador Baogang said.

Without providing more details, Ambassador Baogang said another Chinese firm is in the country to set up another factory in Harare.

He said 60 percent of the Norton products will be exported to Zambia, Mozambique, Botswana and South Africa. This will generate foreign currency for the country.

However, the project was recently stalled following a successful High Court application by Norton Development Association for Sunny Yi Feng Tiles to stop the establishment of the tiles plant until Environmental Impact Assessment certification is acquired.

The Environmental Management Authority (EMA) has pointed out that the project should be socially acceptable and environmentally friendly.

EMA chairman Ambassador Zenzo Nsimbi said he had been away and did not have the latest details on the project’s EIA. Ambassador Nsimbi however said the process had been started.

Norton legislator Mr Temba Mliswa said the firm is making efforts to address the environmental impact issues raised by the Norton Development Association.

Ambassador Baogang said China has over the years invested significantly across Zimbabwe’s sectors, including energy (Kariba South 7 and 8), (Hwange 7 and 8), Victoria Falls airport expansion, Robert Mugabe airport expansion, tobacco contract farming, the National Defence College, Sino-Zim (cement) and Afrochine (chrome), among others.

Trade between Zimbabwe and China, the world’s second largest economy by GDP and number one economy by purchasing power parity, surged past the $1 billion mark last year.

China is the largest consumer of Zimbabwe’s tobacco, which is the country’s single largest export earner.

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds