Auto Tyres Zimbabwe formerly Dunlop Zimbabwe is seeking government support to secure a $12.5 million loan at concessionary rates to revive operations in a move that could see government saving $58 million in foreign currency through imports annually.
Zimbabwe which is currently importing tyres within the range of $110 million annually could save almost half of that import bill if Auto Tyres Zimbabwe is given a boost to recapitalise and start operations with over a thousand people expected to get employment in the process.
According to the company’s director Mr Benson Samudzimu, the company has state of the art machinery which only requires some few repairs while the bulk of the money is required for the importation of raw materials and some operational costs.
Minister of State for Bulawayo Metropolitan Province Cde Angeline Masuku who toured the company as part of her drive to oversee the revival of industry in the city said the company is vital to the national development and as such, government will assist in their quest to recapitalise.
ZBC is reliably informed that Auto Tyres Zimbabwe which closed operations in November 2016 due to shortage of foreign currency has been knocking at several financial institutions’ doors for fresh capital injection with no luck but their fortunes seem to be taking shape, thanks to the new dispensation with the company likely to reopen shop in six months’ time if their current negotiations sail through.