Governement has intervened to revive Caridorn Abrasive, the country's sole producer of abrasives, sand papers and explosives, which stopped operations due to water and electricity disconnections.
The company stopped operations in 2010 after failing to pay its water and electricity bills when the owners Murray and Roberts left unceremoniously, leaving the company in the custody of the employees.
Speaking to Caridorn employees during a tour of Gweru Industries, Minister of State for Midlands Provincial Affairs Cde Owen Ncube said Caridorn was one of the anchor projects in the province that had potential to contribute significantly in reviving the economy. Minister Ncube said the Ministry of Industry Commerce and Enterprise Development was seized with the Caridorn matter.
"Caridorn is the only company in Zimbabwe that manufactures abrasives and explosives that are critical in the mining industry," he said.
"It is the country's sole producer of explosives. At the moment our people have to import from South Africa all their abrasives and material for explosives, thereby draining the country of the much needed foreign currency.
"As Government, we view Caridorn as a possible foreign currency earner, hence the need to support it vigorously as we know that once it is revived it will not only satisfy the local market, but also the regional market, thus raking in more foreign currency." Minister Ncube said Government was in the process of ensuring that Caridorn got new investors to recapitalise it.
"Instead of providing foreign currency to import abrasives and related products, it is better to resuscitate the company which will lead to creation of more employment," he said.
"I am sure that my office's submission to the Minister of Industry recommending the revival of Caridorn should very soon bring investors once they have been identified."
Minister Ncube said Government would also resolve the company's ownership impasse and ensure a smooth operationalisation process.