ZIMBABWE’S sole producer of ammonium nitrate fertiliser, Sable Chemical Industries Limited, is set to resume production in May following a capital injection from the Mutapa Investment Fund.
Sable Chemical chief executive officer, Harrison Shumba, confirmed the positive development in an interview.
The Kwekwe-based giant firm closed roughly three years ago and the Government launched a five-year roadmap aimed at reducing fertiliser imports through capacitating local production companies.
The company faced several shutdowns and operational challenges over the years, largely weighed down by high energy costs and financial constraints.
The company’s revival is a significant step towards achieving this goal and improving food security in Zimbabwe.
“We’re proud to note that we are working towards reopening the company following a cash injection from the Mutapa Investment Fund. Fertiliser production is expected to resume at the end of April to meet the winter wheat season,” said Shumba.
He said electricity and water have been restored, adding that they are working on major mechanical maintenance on all the equipment and the certification required in ammonium nitrate production.
“We anticipate finishing maintenance work around April 24-25. It is a bit of a slow process because the plant has been off for a couple of years,” said Shumba.
“We expect the first bags of fertiliser to be available in the first and second week of May, with stable operations expected at the beginning of June.”
He said the revival of the company is expected to reduce fertiliser prices, currently ranging from US$36 to US$50 per bag, to between US$17 and US$22 per bag.
“The decrease will greatly benefit local farmers, who have been struggling with high production costs,” said Shumba.
The company aims to produce 240 000 tonnes of AN fertiliser annually, significantly contributing to the country’s agricultural sector, which requires about 380 000 tonnes per year.
“Sable Chemicals is working on producing its own ammonium, which accounts for 78 percent of production costs, to keep fertiliser prices low and affordable,” he said.
The aim, Shumba reiterated, is to contribute towards the winter crop season production through the supply of affordable fertiliser to the farmers.
“Sable, when fully operational, can produce 240 000 tonnes per year. However, we will start after maintenance work is complete. The aim is to contribute towards the winter crop season,” he added.
At the moment, Shumba said Sable Chemical imports ammonia, but their long-term plan is for the country to produce its own ammonia since it is very expensive to import.
“The import bill for ammonia is almost 80 percent of all costs. This high import cost translates into high fertiliser prices,” he said.
Currently, Shumba explained that it takes 30 to 45 days to import ammonium, adding that producing it locally will take the company four to five days to produce 60 percent to 70 percent of what the country needs.
He noted that the company currently has 162 employees and employment will increase to 300 once operations resume.
-The Chronicle
