The Sunday Mail
SINGAPORE-headquartered agribusiness group Wilmar International has shelled out US$7,2 million for refurbishment of Olivine Industries’ manufacturing plants.
Refurbishment of the margarine plant will be completed by the end of the first quarter of 2016. Overall, Wilmar International – which acquired the 49,3 percent shareholding in Olivine previously held by Aico Africa – will commit US$32,2 million into the business, US$25 million of which will address part of a debt estimated at US$34million. Work on the margarine plant have resulted in widespread shortages of Buttercup margarine on the market since late last year.
A representative, Mr Derrick Sibanda, told The Sunday Mail Business last week: “So far we have put in US$7,2 million which is for retooling to enable the company’s products to compete both in and outside the country. This is money that the investor has put in.
“We are injecting a further US$25 million for working capital to refinance debt arrears for the new retooled plant. The retooling exercise is in a modular phase and we are about to finish refurbishing the margarine plant.
“By March 31 (2016) we should have finished and Buttercup margarine and baking fats will soon be available on the market.”
Some of the equipment at the plant was installed in 1947.
Meanwhile, there were market rumours suggesting Olivine’s MD Mr Jonas Mushangare and finance director Mr Mavende were on forced leave after attending a board meeting with the new shareholders.
However, Mr Sibanda said the duo was still at work.
“There is nothing like that. It is only that people want to disturb the efforts of turning around the fortunes of the company. . . if that (restructuring) is going to happen, it will be looked into by the board. We have a very competent board led by Mr Peter Madara, a retired chief finance officer of the IDC,” said Mr Sibanda.
IDC holds a 1,3 percent stake in Olivine while Government, through the Ministry of Finance, holds the balance. The Singapore firm, which has interests in Chitungwiza-based Surface Investments – the biggest multi-oilseed processing plant in Zimbabwe – acquired 14 179 880 ordinary shares held by the AICO Olivine Holdings Share Trust. Surface Investments is a joint venture between the IDC (26 percent stake) and Indian firm Midex Global (74 percent). IDC and Cottco took over Olivine Industries after American firm Heinz withdrew in 2008.
