Published: 28 January 2014

The industrial Development Corporation plans to merge two of its subsidiaries, Olivine industries and Surface Investments in order to attract investment for the revival of the companies.

Addressing the Parliamentary Portfolio Committee on Industry and Commerce this morning, IDC chief executive Mike Ndudzo said the company had found an investor who is interested in reviving Olivine and they were still negotiating.

"We have proposed to grow Olivine and Surface into a regional conglomerate which supplies the whole region and the investor we have found will come into the merged company," he said.

"We would have liked to expand olivine, create contract scheme for farmers so that soya bean production goes up and are able to increase production and sell our products regionally."

He said the oil processing plant at Olivine had been closed because of obsolete machinery and lack of funds to retool.

Olivine is outsourcing oil from Surface and other ginneries for the production of margarine and other products resulting in an erratic supply of Olivine products in shops. Ndudzo added that IDC had acquired AICO's 49 percent stake in Olivine making them the majority shareholder in the company.
- bh24

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