Planas ponders future over kaylite ban

24 Jul, 2017 - 12:07 0 Views
Planas ponders future over kaylite ban Kaylite manufacturers were given three months’ reprieve to clear their stock but the ban will then be enforced.

eBusiness Weekly

Enacy Mapakame
Zimbabwe’s biggest polystyrene (kaylite) manufacturer, Planas Investments’ recent $6 million investment in factory machinery might go to waste following a ban on the use of the packaging material over environmental concerns, but the company is already working on alternatives.

Planas business development manager Melody Frank told Business Weekly the firm was making frantic efforts to come up with an alternative solution as well as strategies to recoup losses incurred due to the ban.

At least 50 employees risk losing their jobs, while the firm will also need to raise capital for packages, she said.

Last week, the Government, banned the use of kaylite and other related plastic packaging citing health hazard and pollution.

Mrs Frank, who is also the chairperson of the Zimbabwe Polystyrene Packaging Council (ZPPC), called on Government to allow the manufacturers to continue producing, but for the export market.

That way, she said, manufacturers would be able to offset the losses incurred from the ban, while investing in new machinery for alternative packaging.

“We appreciate the three months’ reprieve, but after all is said and done, we will be the biggest losers,” she said in an interview.

“Even if we are to work on alternatives, we invested heavily in machinery which will just lie idle because there is nothing else we can do with it,” she said.

Following deliberations with stakeholders in the sector, Government gave the kaylite manufacturers a three months’ reprieve for them to clear their stock while the general public will use them at their own discretion.

Planas is currently sitting on an estimated $1,3 million stock pile of product.

“This has come as a disappointment to us, because we had made huge investments towards local manufacturing. Although this ban was talked about years back, we thought we were working together with the relevant authorities and even came up with a waste management plan.

“We are, however, complying with the law, but it would be better if we had been given a year to come up with a better alternative that we are positive will not cause any harm to human health or the environment,” said Mrs Frank.

Zimbabwe now has two kaylite manufacturers, Planas and Wowpak Manufacturers, after Versapak — who were closed when the announcement of the ban was first pronounced.

On average, Planas import 10 to 15 containers or raw materials worth nearly $2 million per year. It manufactures an average of 42 000 bales per month.

Mrs Frank said Planas was already working on a new packaging plan made out of recyclable plastic but expressed fears this could be more expensive to the consumers. Additionally, there was need for more time to test the new material’s suitability to human health as well as pollution.

The cost of kaylite packaging was not more than 4 cents. The new packaging, which if approved will be imported and costs between 15 cents and 21 cents.

Confederation of Zimbabwe Industries president Mr Sifelani Jabangwe said, while there was cause for the ban, the biggest challenge was the lack of a ready alternative which the market can adopt.

Economist Dr Gift Mugano said there was need to look at the ban in a pragmatic way, factoring in the impact it has not only on kaylite manufacturers but across value chains.

He said the small to medium enterprises, especially in the food industry were likely to feel the pinch and this would be a setback in their efforts to contribute to the economy.

“We are definitely going to lose some investment, even after getting three months’ reprieve, it is not enough for one to set up new machinery for new alternatives packaging, alternatives that are not yet available,” said Dr Mugano.

He said there was also need to address the root of the problem and not only a fraction, adding local authorities needed to play a leading role in protecting the environment.

Environmental experts believe exposure to heated kaylite causes severe health problems such as headaches, kidney complications, weakness, respiratory tract and cancer, in addition to decreasing concentration.

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