ASTRA Industries, manufacturer and distributor of paints, on Wednesday unveiled its new partner Kansai Plascon following the conclusion of a merger deal at the end of July.
By Kudzai Kuwaza
Kansai Plascon, a merger of Japanese company Kansai, the world’s sixth largest coatings company, and South Africa’s Plascon, acquired a 49% stake in Astra previously held by the Reserve Bank of Zimbabwe.
Astra Industries chairman Addington Chinake described the merger with Kansai Plascon as “a marriage”.
“In our view, it is actually a marriage. It is a marriage between countries and cultures. It is a marriage between Zimbabwe, South Africa and Japan,” Chinake said.
“It is a marriage of the aspirations of companies that seek to serve their companies better.”
He said the merger would enable the company to spread its wings globally as well as achieving the country’s indigenisation empowerment objectives.
Chinake said the deal was finalised in July just before the country held harmonised elections and the formation of the consortium was a response to the call by the Japanese and South African governments to work together.
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He said the partnership would lead to the rejuvenation of one of the country’s key industries and ensure secured employment as well as new technology and new markets.
Kansai Plascon chief executive Nauman Malik described the new entity as an amalgamation of the three leading players in the paint industry.
These three market leaders, Malik said, had come together to create a new story and a new chapter, going forward.
He said Kansai, which has a turnover of almost $5 billion, aimed to be the leading paint company in the world and this was only possible by tapping into the potential and opportunities Africa has to offer which necessitated the merger of the company with Plascon in 2011 and Astra Industries in July.
“Our partnership with Astra is an important step towards that expansion of creating a Pan-African entity which we as suppliers, partners and customers can all be proud of,” he said.
Representing Reserve Bank governor Gideon Gono at the launch, Azvinandawa Saburi said the central bank had decided to shed its stake in companies as it looks to concentrate on its core business.
He said the shedding of its shareholding in various companies had been delayed by economic challenges the country had faced.
Industry and Commerce minister Mike Bimha, National Indigenisation and Economic Empowerment Board chairman Mike Nyambuya and Harare mayor Bernard Manyenyeni, among others, attended the event.
