Plastics manufacturer Proplastics says it has received board approval to construct a new $5 million factory with work expected to commence in the third quarter upon getting regulatory approvals.
Construction of the factory at its head office was initially supposed to start at the beginning of the year but was deferred pending negotiations with financiers and a greenlight from the board.
“We got a conditional nod from the board yesterday and the only steps left are that we take it to shareholders and undergo an Environmental Impact Assessment (EIA). So once we get that it is all systems go,” chief executive Kuda Chigiya said.
Chigiya said the company was expecting a profitable full year after performance had improved from a dip experienced at the beginning of the year.
“Our business depends much on people digging up the ground so we did not have a good start because of the rains but we have since turned the corner and it looks like it is going to be a good year.”
Last November, Proplastics commissioned a $1.5 million PVC plant at its Ardbennie factory.
The plastic pipes manufacturer was unbundled from Masimba Holdings in June 2015. –The Source