The Sunday News
Business Reporter
THE country’s largest biscuit and sweet manufacturer, Arenel, has over the past six years invested $5 million in purchasing machinery to improve its production and product quality.Arenel’s managing director, Mr Joshua Lepar, said the amount of investment the company had injected exhibited its desire to grow and the confidence it had in the country’s economy.
“Since the dollarisation of the country’s economy we have invested about $5 million and we are looking forward to installing another purpose built biscuit state-of-the-art oven and we are hoping to commission it in 2016,” Mr Lepar said.
In 2011, a state-of-the-art oven with a width of 1.2m was installed which added immensely to the enhanced quality and output of the Biscuit Division. The immediate impact and success of the products forced the company to purchase another new technology biscuit oven with a belt width of 1.5m to complement the existing production capability. The installed capacity allows Arenel to produce up to 100 tonnes on a 24-hour production cycle of both soft and hard dough biscuits.
“By re-tooling our facilities, we have been able to ensure that we once again become a major player on the African continent. Our sweets production plant has the capacity of producing eight tonnes per day.
“However, at the moment we are working at about seven tonnes (of sweets) . . . while our biscuits line has the capacity to produce 100 tonnes but we are currently doing about 40 percent of that,” Mr Lepar said.
Additionally, Arenel have installed a new lollipop plant line, which they intend to continue to grow their sweet production capacity with over the next couple of years. “Further, we have updated our wrapping and packing divisions to further enhance our product brands,” cites Mr Lepar.
In 2013, the company opened a much needed 8 000 cubic metre warehousing facility, which was purchased and re-designed to take care of the new increased production output, distribution and logistical needs to ensure it remains competitive and continues its devotion to customer service excellence.
Recently, Arenel purchased a property adjacent to their Bulawayo head office comprising 2.6 hectares where it plans to build a new purpose built production facility as Mr Lepar further explains: “This is to ensure that we stay abreast of new technologies as well as ensuring that we are able to meet the ever growing demand for the Arenel brand.”
The estimated $2 million purpose-built production facility to house a new enlarged biscuit factory together with an automated plant would be commissioned in 2016.
Arenel exports its products to Zambia, South Africa, Malawi and Nigeria and has set its sights on spreading its tentacles across the continent by including Angola, Uganda and Ghana.
Mr Lepar said the Government should revise its import duty tariffs so as to improve viability in most companies.
“We are not saying we need a reprieve but we need to be competitive on the market so raw materials need to come at the right price. There should be a level playing field…
“We are being made to pay the same duty as bakeries yet biscuits have a life shell which we can’t afford to compromise…it costs $100 more to buy local flour,” he said.
Arenel was formed in 1946 and employs 350 workers.
