The Sunday Mail
ANCHOR Yeast Ltd, Zimbabwe’s sole yeast maker, says it’s close to clinching a multi-milion dollar deal with Lesaffre Group, a French company, as part of a deliberate move to bring the company back on the rails.
Anchor Yeast needs an estimated $4,5 million to upgrade its manufacturing plant in Gweru, a development that will help triple production to 10 000 tonnes per year from the current 3 500 tonnes per year.
Anchor Yeast Ltd chief operations manager Mr Mgaa Gumbo said Wednesday the deal now awaits Government approval.
There are indications Lesaffre Group is likely to acquire a sizeable stake in the company.
“We are at a very advanced stage,” said Mr Gumbo after a tour of the company’s Gweru factory by Industry and Commerce Minister Mr Mike Bimha, the Confederation of Zimbabwe and journalists on Wednesday.
“There are certain conditions that should be met before we conclude the transaction, and we have had support from Government.”
Mr Gumbo said the deal will release fresh capital and boost technology transfer, areas that continue to affect local production.
Anchor Yeast is presently operating at 79 percent capacity from 59 percent last year.
Domestic annual yeast consumption currently stands at 56,000 tonnes.
Minister Bimha, who also toured Bata Shoe Company and Zimbabwe Alloys, said the Government commends the new partnership as it is one of the initiatives that brings Gweru’s industrial activity back on its feet.
Lesaffre Group, founded in northern France in 1853, last year reported a turnover of 1,6 billion euros and supplies about two-thirds of global yeast needs.
The company has operations in more than 40 countries and employs 8 000 people. It specialises in yeast and fermentation products for the baking and wine industries among others.
