Delta puts new plant on hold

DELTA Corporation (Delta) says it has to put some construction phases of its Chibuku Super plant in Rusape on hold due to foreign currency shortages.

The shortage of foreign currency in Zimbabwe has not only hampered government efforts to boost economic growth, but has also seen companies failing to import raw materials and equipment.

Alex Makamure, Delta’s corporate affairs director, said although the company has secured land at Tanzaguru Industrial Park for its Rusape brewery, work was being stalled by foreign currency shortages.

“The brewery will be constructed in phases, starting with civil works that do not require foreign currency. The major phase is on hold due to shortage of foreign currency. The project is already behind as the company has exhausted the Chibuku Super capacity,” he said.

The new plant, whose components are imported from Germany and South Africa, has a lead time of eight months to shipment, while full commissioning may take between 10 t0 12 months from date of orders.

The latest development comes at a time when the listed beverages manufacturer is eyeing Anheuser-Busch InBev (AB InBev)’s Zambian and Malawian assets as the Belgian brewer exits the Sub-Saharan market.

The Zimbabwe Stock Exchange (ZSE)- listed beverages manufacturer- which is 40 percent owned by AB InBev- in January said since the Budweiser maker was divesting out of the region, it had resolved to bid for assets available in the wake of an increasingly tough operating environment in Zimbabwe driven by foreign exchange scarcity.

Delta, through its principal subsidiary Delta Beverages, is involved in the brewing of lager and traditional beer and the bottling of soft drikns under license from the Coca-Cola Company.

Source: FinGaz

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