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Published On: Sat, Dec 20th, 2014

Willowvale Mazda Motor Industries to close down

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mazdaTHE Industrial Development Corporation Zimbabwe (IDCZ) is set to close unviable operations such as Willowvale Mazda Motor Industries, Sino Zimbabwe Cement Company, National Furniture Industries, Motira Tractors and Sunway City.

The corporation will also dispose of Allied Insurance, Almin Metal, Amtec, Deven Engineering, G&W Industrial minerals, Surface Investments, Stone Holdings and Zimbabwe Grain Bag to third parties.

IDCZ said the group suffered huge losses mainly as a result of major operational challenges faced by subsidiaries of the corporation and the consequent reported losses by subsidiaries.

In 2013, IDCZ incurred a loss of $54 million in 2013 and its current liabilities exceeded current assets by $16 million compared to the same period last year.

The corporation incurred a loss of $2,6 million in 2012, while the whole group registered a loss of $23,1 million in 2013 compared to the same period the previous year.

IDCZ depends on subsidiaries for its source of revenue through management fees.

“As a result of non-performance of these investments, the corporation impaired some of the investments in these subsidiaries to the tune of $56 220 754 during the year. Included in total equity is non-distributable reserve amounting to $97 795 676 and $109 034 771 for the group and corporation respectively,” IDCZ said in its 2013 annual report.

The group had a rights issue call in 2013 for $37 million and has adopted strategies dilution, disposal, dissolution and development.

The company will dilute its operations by attracting both local and foreign direct equity investment in Chemplex Corporation Limited, Olivine Holdings and Zimbabwe Glass Industries Limited.
– See more at: http://bulawayo24.com/index-id-business-sc-companies-byo-59725.html#sthash.mHpi1P6k.dpuf

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