35 MILLION DOLLARS KGM IN KAPIRI TO BE COMMISSIONED IN OCTOBER 2016.
The 35 million United States Dollar Kapiri Glass Manufacturing Plant (KGM) in Kapiri Mponshi is set for commissioning by the end of October following the successful installation of the New modern glass manufacturing equipment by the Glass Service of Italy.
Once commissioned the factory will create 200 direct jobs and double the number in the value chain with a projected production of 95 tons of glass equivalent to 200, 000 Castle or Mosi beers bottle.
|Newly Installed Equipment at KGM|
The Kapiri Glass Manufacturing Company limited formerly Kapiri Glass products limited as a parastatal was shut down in 1998 following the privatization in 1995 due to the weak market for glass bottles at the time.
And Government says the revamping of the factory by the local investors is clearly the Patriotic Front testimony of developing the country through industrialization of the economy.
Speaking during the tour of the plant to access the progress made by Chimsoro Group of Companies which aquired the company in 2008, Finance Minister Alexander Chikwanda said the commissioning of the factory in October will contribute positively to the economy as it will save the reserves through reduced imports.
Mr. Chikwanda said the factory will also light up Kapiri Mposhi town which has been treated as a ghost town due lack of serious economic activities in the area.
|Martin Akende Business Journalist.|
"It is gratifying to see indigenous people take up such big and very important manufacturing projects, this we help save our reserves because the country will cut on the import of glass and bottles." said Mr. Chikwanda.
The minister is optimistic that the market for glass will increase both local and international market.
He has however expressed concern that the indigenous people are not taking an active role in the economy of the country.
Mr. Chikwanda further added that government will practice an open door policy to ensure the company and other players in the private sector thrive.
The Kapiri Glass Manufacturing company limited was financed with acquisition of a 16 million united states dollars loan from the PTA and Development Bank of Zambia for the installation of new equipment that includes New Glass Forming Machines, rehabilitation of sand plant, Batch Plant, Furnace, Forehearth and forming lines.
Other revamped areas in plant include annealing layers, forming lines, packaging and inspection machines to be installed by Butcher Enhart.
And KGM Director Muna Hantuba said the company has rekindled a new Era of glass container manufacturing in zambia and will be largest industry earmarked to cover a wider market within and outside the COMESA region.
Mr. Hantuba said the market demand for glass products has increased several folds in the last two decades evident not only in Zambia but beyond borders due to pressure in the market for the reduction in use of plastics which an environmental nuisance.
And the group chairperson Costen Chilala appealed to government to consider offering incentive and concessions such as high costs of energy and other raw material required for the continuous run of the factory.
Mr. Chilala also said government through Zambia Revenue Authority should provide exemptions in order to give competitive prices on the market.
Zambia has been a dependent on importation of raw material and finished goods on the market which resulted in the serious fractuation of the currency to major world convertible currencies.