Kwekwe ferrochrome producer, Zimasco has resumed production after seven months of closure as demand of the commodity fell down due to the Covid-19 pandemic, Gweru Gazette Business has established.
The company shut down its Kwekwe plant in March in response to the global coronavirus.
Zimasco general manager for marketing, Clara Sadomba confirmed the reopening of the plant saying demand for ferrochrome had improved on the global market.
“At the end of March 2020, Zimasco temporarily halted it’s smelting and related mining operations in response to weak global demand and resulting low prices in ferrochrome,”she said.
“This made continued production unviable with the Covid 19 pandemic impacting on demand in China in December 2019 to early 2020.”
The East Asian country consumed about 60% of the world’s ferrochrome.
Added Sadomba:”After the crippling impact of the various lockdowns on the global economy, the resumption of level of economic activity in key steel producing countries where Zimasco supplies it’s ferrochrome also saw the company resuming production at the end of October to ensure we supply out clients accordingly.” The form targets to export more than 300 000 tonnes of the commodity this year