The Sunday News
ONE of the country’s biggest leather tannery, Wetblue Industries, which is under provisional judicial management has resumed operations after shutting down four years ago although a $1,5 million debt overhang is still a major concern.
Wetblue Industries is a subsidiary of the Cold Storage Company (CSC), which was put in place as a strategic unit for the tanning of hides from the once biggest meat processor and marketer in the country.
However, the decline in the slaughter rate for close to two decades at CSC’s five abattoirs dotted around the country culminated in lower uptake of hides by Wetblue Industries.
Even the introduction of a hides buying scheme by CSC failed to yield tangible results as the company faced financial constraints to purchase the products from communal farmers thus leading to the closure of Wetblue Industries in 2009.
The company was placed under provisional judicial management on 24 November 2014.
Wetblue Industries general manager Mr Nicoh Mpofu said the company started operating late last year after refurbishment of its major equipment.
“We started operating sometime in October last year but we are only realising optimum production now. We have managed to commission 14 of our 18 liming and tanning drums and our two fleshing machines are up and running.
“At the moment we have the capacity to tan about 600 hides. We are specialising in contract tanning and our biggest client is Bulawayo Abattoirs but I can safely say we are now able to meet the requirements of the industry,” Mr Mpofu said.
Wetblue Industries has the capacity to tan 1 200 to 1 500 hides a day when operating at full throttle.
At its peak the company was a major foreign currency earner enjoying exports to Europe, especially Italy.
It used to employ 150 workers with a complete management team but to date its staff complement stands at 58.
The company’s provisional judicial manager, Mr Crispen Mwete of C Mwete and Company said it was placed under provisional judicial management “to allow it to be nursed back to terminal health and permit it to resume operations as a successful enterprise.”
He acknowledged that the leather processor owed a number of businesses and individuals $300 000 and $1,2 million in unpaid salaries to its employees.
C Mwete and Company will hold its first meeting with the creditors on Wednesday.
Mr Mpofu said although the Government banned exports of raw hides most hide collectors and abattoirs were hoarding the hides for speculative purposes.
“Although we are still in the process of recapitalising we are not desperately in search of capital injection from other sources.
“We believe that at the moment we have the capacity to generate the much needed finance to recapitalise. We only need to have more business in the form of hides coming for processing,” he said.
Mr Mpofu who is also the chairman of the Leather Institute of Zimbabwe said the country’s leather sector was destined for greater heights and has the capacity and ability to catch up with that of South Africa and Ethiopia, which are the continental leather products powerhouses in Africa.
