HomeNewsIDC to announce Olivine Industries tender winner

IDC to announce Olivine Industries tender winner

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THE Industrial Development Corporation (IDC) is expected to announce the winner of Olivine Industries tenders that closed last week.

VICTORIA MTOMBA
BUSINESS REPORTER

Olivine Industries has been failing to get a suitable suitor for the past three years. IDC spokesperson Dereck Sibanda said the tenders closed last week and the response has been encouraging.

“Many South Africa companies came with their tenders as they have realised that the recently introduced import duty on cooking oil will affect them,” he said.

Olivine Industries has an installed capacity of 900 000 litres per month, but it is currently producing 700 000 litres per month.

Sibanda said the coming of a new investor will help the company to increase its capacity. Olivine in the past received a $20 million offer for a 62% stake from Vasari. The transaction failed to sail through as Vasari pulled out from the deal in September 2013.

Olivine had 78 lenders and investors who wanted to invest, but no deal materialised. IDC entered into a partnership with Surface Investments and they have been producing cooking since July this year.

Sibanda said the output for Surface Investments has increased to four million litres a month from 300 000 litre per month and the company has created 457 jobs from 100 jobs.

“The company has plans to diversify to other related products going forward,” Sibanda said.

IDC entered into a partnership with Surface Investments and they have been producing cooking since July this year.

Sibanda said the output for Surface Investments has increased to four million litres a month from 300 000 and the company has created 457 jobs from 100 jobs.

“The company has plans to diversify to other related products going forward,” Sibanda said.

Surface Investments is a partnership between IDC and Midex Group of India. The company was formed in 2006. IDC is a company that has several subsidiaries and is looking for investors to invest in the businesses.

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