National Printing and Packaging (NatPrint) and Hunyani Holdings (Pvt) Limited are set to be the biggest beneficiaries of the kaylite ban, as Simbisa Holdings, massive users of the food containers, are in talks with the two companies to provide alternative packaging.
BY TATIRA ZWINOIRA
Before the ban, Planas Trading was set to provide 40% of the kaylite packaging to Simbisa Holdings and had already spent $1,2 million on acquiring a machine in addition to acquisition of a new property in anticipation of massive expansion of the business.
Simbisa Holdings chief executive officer, Warren Meares told NewsDay recently that they were in talks with local players to try and avoid importing special raw materials needed for the preferred cardboard-based packaging.
“We are also working with local suppliers like Hunyani and NatPrint to try and come up with some packaging as well,” he said.
“We are still investigating and local suppliers are looking at the imported material to see what price they can land the materials at.
“I do not see an impact on the customer, I do not see us changing our prices.”
However, he said that could change if they had to import the goods, specifically, special coating used to make sure that hot food placed in the cardboard based packaging does not destroy the packaging.
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After the country’s biggest kaylite packaging firm, Versa Pack, closed in November 2016, Planas Trading stood to fill in the gap, with Simbisa set to be the company’s biggest client.
Planas engaged Simbisa shortly afterwards to provide them with about 800 000 kaylite packs from the latter’s monthly requirements of two million.
This led Planas to invest in a new property and kaylite making machine.
But, the plans stalled after the Environmental Management Agency (EMA) invoked Statutory Instrument (SI) 84 of 2012, which banned the manufacturing or importing of polystyrene (kaylite) plastic for commercial distribution.
While Planas was left out in the cold, EMA called for alternatives, which NatPrint and Hunyani Holdings (Pvt) Limited are capable of supplying.
The alternative cardboard-based packs cost much more than kaylite packs, which could see prices of mainly takeaway foods increasing.
Planas sales and marketing manager, Melody Frank said they knew EMA raised concerns over kaylite, but thought since they had given them a waste management plan to recycle the packs, which had been agreed too, that they had some time.
“It (Versa Pack closing down) was going to benefit us because we were going to be the supplier to all of Zimbabwe, all the fast food retails (outlets),” she said.
“We had bought a property and more machinery to make sure we could supply to everyone in Zimbabwe, but unfortunately we did not get the opportunity.
“We actually brought in a $1,2 million machine, which was going to be just for Simbisa and it had been approved.
“Unfortunately, it is now going to be derelict and defunct because now it cannot be used for anything else.”
However the government gave a three-month reprieve for kaylite packaging companies.
