×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Sable Chemicals closure sinks Kwekwe

News
The recent decision by power utility Zesa Holdings to pull the plug on the country’s sole ammonium nitrate (AN) fertiliser manufacturer, Sable Chemicals, threatens 480 jobs and has far-reaching effects.

The recent decision by power utility Zesa Holdings to pull the plug on the country’s sole ammonium nitrate (AN) fertiliser manufacturer, Sable Chemicals, threatens 480 jobs and has far-reaching effects.

BY BLESSED MHLANGA

The ripple effects of shutting down the entire electrolysis plant, which at its peak was consuming 80 megawatts of power, were now beginning to be felt in the health sector.

Sable Chemicals was the major supplier of liquid oxygen to Kwekwe General Hospital, ferro chrome smelting giant Zimasco and BOC Gases.

Oxygen is a by-product in the process of manufacturing fertiliser at Sable Chemicals, with the gas being captured at the electrolysis plant.

Production manager Allen Manhanga said the closure of the plant meant that all clients who relied on them for oxygen would have to look elsewhere, where the product could be more expensive.

“It is true we supply oxygen to hospitals. Zimasco was also our major client because they need the product to run their furnaces. The product coming from Sable Chemicals is affordable because it’s a by-product, so the closure of the plant will definitely affect the health institutions,” he said.

Sable Chemicals also produced ammonium solution, which is an important raw material in the manufacture of explosives.

Explosives manufacturing company Dyno Nobel, which had been closed and was recently brought back on line by new investors, is now standing on rocky ground.

Manhanga said Dyno Noble representatives visited Sable Chemicals to get assurances that they would always be there to supply the ammonium solution, which is explosive by nature.

sable

“The reopening of Dyno was based, in part, on the availability of ammonia solution from us and we assured them that we would be there. However, once we have imported ammonium and are back on line on the other side of the plant, we will be able to supply them the raw material,” he said.

Following the recent sacking of over 600 workers by Zimasco, another 480 are facing an uncertain future at Sable Chemicals.

It would be a huge blow to Kwekwe if Dyno Nobel was forced to close, as over 100 workers will be left stranded with no income.

Mayor Matenda Madzoke lamented the company closures, saying they had put a strain on the performance of the city budget, with council owed over $26 million by companies and domestic ratepayers.

Finance committee chairpersons, Janet Ticharunga said in her 2016 budget statement that the future was gloomy, as there was no hope that unemployment would be dealt with in 2016.

“Liquidity constrains continued to negatively affect revenue collection during the year under review with most of our local companies closing or downsizing. Of major concern was Zimasco, which laid off 1 000 employees,” she said.

“We will not see much resuscitation of industry nationally, and particularly in Kwekwe, and thus the economic environment prevailing now will continue for the greater part of 2016.”

Small companies involved in buying and selling of industrial gear and other materials have not been spared since they have been feeding off orders from Zimasco, Sable Chemicals, Ziscosteel and Steelmakers.

These major companies facing liquidity challenges of their own have now scaled down production levels and eventually their own consumption of other consumables.