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Delta Corporation subsidiary MegaPak invests $30 million in retooling
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Delta Corporation subsidiary MegaPak invests $30 million in retooling


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Delta Corporation subsidiary Megapak has not been able to replace its archaic crate making plant despite investing over $30 million in its business since the adoption of multiple foreign currencies in 2009, an official said on Monday.

Megapak runs the only plastic crate making plant in Zimbabwe.

Managing director, Martin Makomva described some of the machinery the plastic goods manufacturer was still using as fit for “Jurassic Park”, a fictitious establishment where extinct animals such as dinosaurs are found.

Some of the plants at Megapak are over 40 years old.

“Dollarisation allowed us to retool and reinvest in the business but since 2009, we have not had enough money to invest at the rate that we would want. The total investment made since then is over $30 million,”

Makomva said.

The old crate machinery produces on average 1 300 crates a day while newer technologies double the capacity.

“We have the only crate factory in the country and it is one example that we need affordable capital,” he said.

“We have failed to replace a lot of these machines over the last 15 years.”

Makomva said the company, which produces up to 12 tonnes of plastic products annually, was on average investing $4.5 million in capital expenditure annually.

Declining consumer demand, unscheduled power cuts and other poor utility supplies were impacting the company’s performance, he said.

Megapak, which enjoys a 75 percent market share, sales 98 percent of its products on the local market with the remainder exported.

“The plants are filling up with products due to slow demand, volumes are also going down. We keep producing because it is expensive to shut down the machines. If machines are not worked, the cost of producing the products goes up,” Makomva lamented.

He said the liquidity crunch had resulted in customers requiring extended credit period of up to two months to pay for goods while raw materials suppliers demanded cash before release of inputs.

Megapak imports its raw materials which are by-products of oil making process from South East Asia and South Africa.

The export market was not viable as local products were uncompetitive due to a number of variables, he said.

“The fact that we struggle with power and that we are also in the process of retooling makes us uncompetitive in terms of our pricing,”

Makomva said.

He lauded government for recently imposing 15 percent duty on plastic imports to protect the local industry.

Megapak, which is partly owned by South Africa firm Nampak, employs 360 people.

New Ziana

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