Facing crippling power shortages and slowed production, Zimbabwe’s sole ammonium nitrate (AN) fertiliser manufacturer, Sable Chemicals, has been forced to let go 139 workers from its 480 employees with effect from the beginning of this month.
BY BLESSED MHLANGA
Sable Chemicals is struggling to stay afloat after Zesa cut down power supplies by 80 megawatts, forcing the company to close its entire electrolysis plant.
Workers who spoke to NewsDay said they had been told not to report for work as the company was now working on their retrenchment packages.
“A total of 139 of us have been forced out because the company can no longer sustain our salaries and wages owing to the power cuts and a harsh operating environment, but we have also been thrown into the deep end and face a future of uncertainty,” said a former worker who refused to be named.
Sable Chemicals, which briefly closed shop in October, has since reopened after receiving a consignment of ammonium from South Africa.
According to top officials at the company, the import prices of ammonium had gone up from R7 414 to R7 606 per tonne in the last month, but this was not likely to affect the local producer price of the fertiliser.
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“I can confirm that the price of importing ammonium has gone up, but this will not affect our pricing, but instead prices could go down all factors considered, that is, the devaluation of the rand, the reduced staff costs arising from the retrenchments and a new business model which we have adopted,” said a top company official.
Sables Chemicals chief executive officer Jack Murehwa in his address to journalists yesterday refused to shed light on the retrenchments, but confirmed the adoption of a new business model.
“Based on this model, production at Sable is going to ensure that there is enough AN in the country into the future,” he said during a familiarisation tour of the plant by other stakeholders yesterday.
“Production is going to increase as additional funding is channelled towards the purchasing of more tank cars, thereby increasing the total volume of AN that can be produced.”
2015 was a dark year in the history of Kwekwe with over 1 000 workers losing their jobs at major companies owing to downsizing. Zimasco sacked 600 workers in one blow due to depressed metal prices on the market.
