Sable Chemicals is currently saddled with a $30 million debt, which has accumulated since 2009 among other capital requirement challenges. In a bid to improve efficiency, the company initially embarked on an internal job evaluation exercise and reassigned staff from non-critical positions, such as secretaries, into the factory.
Management also cut down on benefits including education allowances for all employees in order to maintain a thin budget but that has not helped. The company has about 400 employees.
“The move from electrolysis to gasification which is currently underway is expected to end the company’s woes because they would need less capital to operate,” Industry and Commerce Minister Welshman Ncube told The Zimbabwean.
Gasification means that Sables would stop depending on ZESA’s power and use coal which is cheaper. Ncube added that a whole plan to turn around the company was being implemented.
“The implementation of gasification will also mean that Sables will require a reduced workforce but will still get the same production results. That on its own will be great and cost-effective,” said Ncube.
Post published in: Business