Categories: Stories

ART to recapitalise Kadoma Paper Mills

Diversified group, Art Corporation says it plans to recapitalise its subsidiary Kadoma Paper Mills (KPM) in the short-term but has no intentions to reopen Mutare Board and Paper Mills (MBPM), which folded five years ago.

Mutare Board and Paper Mills, which was a virtual monopoly supplying 90 percent of newsprint requirements in the country, folded in 2012 after newsprint prices collapsed under pressure from cheaper imports. Following its closure, the country has been depending on imported newsprint, spending at least $15 million per annum.

Art Corp company secretary Abisai Chingwecha said that the group had no immediate plans to revive the Mutare operation.

“There are no plans at present to reopen Mutare Board and Paper Mills. The premises are currently being leased out and the company is satisfied with the return,” he said adding that Art Corp was not considering selling off the premises as well.

With a staff compliment of over 600 workers MBPM played a pivotal role in Mutare.

Chingwecha said that the group was in the short-term focused on further recapitalising Kadoma Paper Milling (KPM).

KPM is the sole producer of tissue and fine paper products in the country.-The Source

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This post was last modified on %s = human-readable time difference 12:32 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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