Published by the government of Zimbabwe
7 October 2008
Harare — The Industrial Development Corporation of Zimbabwe Limited is considering re-modelling its subsidiary, National Glass Industries in Kadoma, which has been lying idle for years, as efforts to revive it intensify.
IDC public relations manager Mr Derrick Sibanda said they were still awaiting the findings of the financial evaluation by Jingnui (Zimbabwe Investments) Private Limited.
"The joint team has completed the technical evaluation of converting the infrastructure to suit the new technology.
"If the financial feasibility currently underway determines that the estimated cost of the conversion exceeds the cost of setting up a new plant, the Industrial Development Corporation of Zimbabwe Limited will go back to the original plan of converting the plant into a specialty glass factory," he said.
National Glass Industries was set up by the IDC and its technical partner Romanian firm, Romsit in 1993.
The glass firm however closed shortly afterwards as it produced poor quality glass, which cracked due to overheating, a factor that was blamed on Romsit.
Romsit denied responsibility resulting in IDC seeking recourse at the International Chamber of Commerce (ICC), which ruled that the failure by Romsit to rectify the defects in the plant, was responsible for the damage incurred at the project.
It was then established that IDC was entitled to the rehabilitation costs of the glass project incurred in financing the reconstruction of the plant.
Romsit appealed against the judgement by the ICC, which prompted IDC to take the case to the Romanian Supreme Court, which ruled in its favour (IDC).
Despite the ruling Romsit failed to heed the judgement by the Romanian Supreme Court resulting in IDC seeking the guidance of the Paris-based International Court for the Settlement of International Disputes.
Apart from the Kadoma plant, which specialises in manufacturing glazing or flat glass, IDC also has another glass manufacturing company Zimglass container glass factory in Gweru.
Zimglass has two furnaces, one of which is owned by Headend Enterprises (Private) Limited, a joint venture between IDC and Delta Corporation.
The joint venture also leases the rest of the assets from Zimglass, which remains a wholly owned subsidiary of the IDC of Zimbabwe Limited.
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